Iridex Corporation announced the closing of a strategic investment from Novel Inspiration International Co., Ltd., totaling $10 million in gross proceeds. This investment included $6 million in new Series B Preferred Stock and $4 million in convertible notes, priced at a common stock equivalent of $2.00 per share.
The agreement also provides Novel Inspiration with an option to fund up to an additional $10 million for future growth initiatives. A portion of the initial proceeds was strategically used to repay the Senior Convertible Promissory Note issued to Lind Global Asset Management IX LLC, significantly strengthening the company's balance sheet.
In connection with the transaction, Novel Inspiration gained the right to appoint two board members, with William Moore joining the board. Additionally, Iridex appointed Romeo Dizon as its new Chief Financial Officer, replacing interim CFO Fuad Ahmad, marking a key leadership change for the company.
This strategic investment concludes the company's previously announced strategic review process. CEO Patrick Mercer stated that the recapitalization enhances Iridex's ability to pursue opportunities related to its advanced laser-based treatments, particularly for glaucoma, following the favorable November 2024 Local Coverage Determination.
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