Morning Commentary: Inpixon prices convertible preferred offering; AMAG in focus

By Abigail W. Adams

Portland, Me., Feb. 15 – Thursday began with the pricing of another small convertible preferred stock offering after a period of relative silence in the primary market as volatility rattles broader markets.

In an $18 million offering of class A and class B units announced prior to the market open Thursday, Inpixon priced class B units consisting of one share of series 3 convertible preferred stock and one warrant.

The class B units were priced at par with the convertible preferred stock and warrant each convertible into 426 shares of common stock, according to a company release.

The conversion price for the preferred stock is $2.35, the same price for a class A unit, which consists of one common share and a warrant for one common share. The warrants carry a strike price of $3.50 and expire in five years.

Inpixon’s offering is the second small convertible preferred stock offering in as many days. Avinger Inc. priced $18 million, or 18,000 shares, of series B convertible preferred stock and series 1 and series 2 warrants prior to the market open Wednesday.

There is no dividend on either convertible preferred stock offering. In the case of Avinger, the convertible preferred stock was essentially just a book to hold the warrants, a market source said.

AMAG Pharmaceuticals Inc.’s 3.25% convertible notes due 2022 were in focus and the center of a flurry of trading activity early in Thursday’s session. The struggling convertible notes climbed about 10 points on an outright basis to trade in the 97 range.

AMAG stock soared early Thursday, climbing to $17.80, an increase of 28.06%.

The Waltham, Mass.-based pharmaceutical company announced Thursday the U.S. Food and Drug Administration had approved a drug-device combination product to reduce the risk of preterm birth in pregnant women that have experienced preterm birth in the past.

AMAG is collaborating on the drug-device product with Antares Pharma Inc. AMAG will produce and supply the drug to Antares, which will assemble and package the device.

AMAG’s 3.25% convertible notes have largely traded in the mid 80s since November when the company lowered its 2017 revenue guidance.

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