Accuray Incorporated (NASDAQ: ARAY) has completed a private placement of Series A Convertible Preferred Stock to its primary lender, TCW Asset Management Company LLC, as disclosed in a November 6, 2026, Form 8-K filing. The transaction involved the sale of 55,000 shares of Series A Preferred Stock for a total purchase price of $55.0 million, or $1,000 per share. This amount was comprised of $15.0 million in cash and the conversion of $40.0 million of existing indebtedness held by TCW.
The Series A Preferred Stock carries a dividend rate of 8% per annum on the stated value, with dividends compounding quarterly. Holders of this preferred stock have rights senior to the company's Common Stock regarding dividend payments and asset distribution during liquidation. The preferred shares are convertible into Common Stock at an initial rate of 50 shares per $1,000 of stated value, or $20.00 per share, subject to standard adjustments.
In addition to the equity offering, the company filed amendments to its certificate of incorporation to implement a 1-for-40 reverse stock split of its Common Stock. The reverse split became effective on November 9, 2026, at 12:02 a.m. Eastern Time. As a result of this split, every 40 shares of Common Stock issued and outstanding were combined into one share. The total number of authorized shares of Common Stock was reduced from 400,000,000 to 10,000,000 shares.
The filing also indicates that certain outstanding warrants held by investors were automatically canceled and extinguished upon the closing of the transaction. These warrants previously provided the right to purchase approximately 27.6 million shares of Common Stock at various exercise prices ranging from $1.25 to $1.68.
