05:35 AM EST, 03/07/2024 (MT Newswires) -- Avinger (AVGR) on Wednesday unveiled an equity funding partnership with a medical device group from China and secured a three-year extension of its debt terms with CRG Partners.

Shares of Avinger surged 30% in premarket activity Thursday.

Under the terms of the agreement, Zylox-Tonbridge Medical Technology Co. will invest up to $15 million into Avinger through the purchase of preferred and common stock in two equal tranches, according to a statement from Avinger. The funding is tied to a licensing agreement providing access to Avinger's products in Greater China, and a technology transfer deal to build manufacturing capacity to support global sales.

In addition, a collaboration agreement will allow Avinger to access certain Zylox-Tonbridge peripheral vascular products for distribution in the US and Germany.

The initial $7.5 million investment was priced at $3.66 per share. The second tranche will be funded upon achieving key milestones, including registering Zylox-Tonbridge as a manufacturer of Avinger's products with the US Food & Drug Administration and Avinger achieving $10 million in aggregate revenue over four consecutive quarters.

Additionally, CRG Partners, the primary holder of Avinger's debt and preferred equity, extended principal payments on Avinger's debt to Q1 2027 from Q1 2024, with interest payments accruing during this time.

Price: 4.77, Change: +1.07, Percent Change: +29.73