Iridex announces convertible note financing

IRIDEX Corporation has executed definitive agreements related to a private placement financing of a senior convertible promissory note with Lind Global Asset Management IX LLC, an entity managed by The Lind Partners, which will result in net proceeds of approximately $3.5 million at closing. Subject to certain conditions, the Company may issue a subsequent note to Lind for additional net proceeds of approximately $1.5 million, for total potential net proceeds of approximately $5 million to the Company. The Financing is subject to customary closing conditions. Each of the Notes has a 24-month term. The Initial Note has a principal amount of $4,200,000 and the Subsequent Note, if issued, will have a principal amount of $1,800,000. The Notes are convertible into shares of the Company’s common stock at an initial price per share of $2.44. Under the terms of the Notes, the Principal Amount the Company is required to repay will be reduced to the extent the Company elects to repay the outstanding Principal Amount within 180 days of the issuance of the applicable Note, or after 180 days but within 365 days of the issuance of the applicable Note. Within 30 days following the issuance of a Note, the Company is required to file a registration statement with the Securities and Exchange Commission to cover Lind’s resale of any shares of the Company’s common stock underlying the applicable Note. Commencing 120 days from the issuance date of the Notes, subject to certain conditions, the Company will begin to repay the outstanding Principal Amount of the applicable Note in twenty consecutive monthly installments. At the Company’s option each month, repayments can be made in cash plus a 4% premium, shares of the Company’s common stock or a combination of cash and Repayment Shares.