This partnership includes an exclusive right to Zylox-Tonbridge to localize, manufacture, and commercialize the entire product family developed by Avinger in Greater China (including Mainland China, Hong Kong, Taiwan, and Macau), and a technology transfer agreement to leverage Zylox-Tonbridge cost-efficient manufacturing capacity to support Avinger's global sales outside of Greater China. This collaboration also provides Avinger the opportunity to distribute high-quality peripheral vascular products developed by Zylox-Tonbridge in the United States and Germany. Based on the achievement of certain milestones, Zylox-Tonbridge will invest 15.0 million USD into Avinger in two tranches by subscribing for newly issued common shares and preferred shares of Avinger.

Avinger is globally recognized for its pioneering OCT-guided, catheter-based system and devices, offering real-time intra-vascular imaging during treatment. This innovation empowers physicians to precisely identify and treat diseased vessels while minimizing vascular damage risks. Avinger's flagship products include Pantheris (an OCT-guided atherectomy device), Ocelot and Tigereye (OCT-guided CTO-crossing devices), and LightBox 3 (the OCT imaging console). These products have demonstrated clinical safety and efficacy in multiple clinical trials completed by Avinger.

According to some market research data, there are over 8 million PAD patients in the United States as of 2022. Atherectomy has become widely adopted, leading the Total Addressable Market of atherectomy devices to around 760 million USD in 2022. Compared to the U.S. market, atherectomy devices are at the initial stage to be utilized during PAD procedures in China, while it is estimated that the population of PAD patients in China was approximately 40 million as of 2020 and the number is still growing rapidly. Driven by the increasing penetration of drug-coated balloons in interventional procedures, the demand for better vessel preparation and atherectomy devices to optimize post-intervention results is growing.

By collaborating with Avinger, Zylox-Tonbridge is introducing the globally leading OCT-guided vascular treatment technology to the Chinese peripheral intervention market. The collaboration is anticipated to further bolster Zylox-Tonbridge's peripheral product portfolio for PAD, making another step toward achieving its strategic goal of offering a comprehensive solution in peripheral vascular Intervention medical devices. Furthermore, Zylox-Tonbridge will leverage its robust and cost-effective manufacturing capabilities to enhance Avinger's global market competitiveness. The partnership represents a progressive stride in Zylox-Tonbridge's mission to expand globally and bring high-quality and affordable medical products and services to patients worldwide.

Dr. Jonathon ZHAO, Chairman and CEO of Zylox-Tonbridge, said, "We are pleased to partner with Avinger to provide Chinese healthcare professionals and patients with cutting-edge medical technologies and innovative products. We believe this collaboration will expand the company's Peripheral Vascular Intervention product portfolio, reinforcing our market leadership, and accelerating the growth of the vessel preparation business in China's peripheral vascular intervention market. Leveraging our advanced manufacturing capabilities and working with Avinger, we are confident in bringing more cost-efficient and high-quality products to patients. We are looking forward to cooperating with global partners to capitalize on growing market opportunities by offering high-quality and affordable innovative medical products and services for all."

"We are excited to announce this strategic transaction with Zylox-Tonbridge, a dynamic leader in the peripheral interventional market in China," said Jeffrey M. Soinski, Avinger's President and CEO. "Our broad-reaching partnership creates an exciting new pathway for Avinger products to enter the large and growing Greater China market through an established commercial channel. It also provides the opportunity for a more cost-efficient manufacturing structure to support the growth of global sales, as well as the potential for Avinger to access Zylox-Tonbridge's high-quality peripheral products for distribution in the U.S. and Germany."