Raleigh-based Baxano Surgical (Nasdaq: BAXS) , a medical device firm focused on back ailments, says two investors have agreed to a $10 million stock deal in a private placement.

The company raised $22 million in December.

Baxano says the new capital will be used to “build product portfolio and execute commercial growth strategy focused on minimally invasive spine.”

Shareholders must still approve the deal, which includes some 9.43 million shares. Shares involved will have an exercise price of $1.19. The investors will receive 6 percent interest through March 11, 2017.

Baxano shares closed at $1.24 on Tuesday.

“We are pleased to have entered into this financing transaction. We plan to use the proceeds to expand our product portfolio through the development of the Avanc pedicle screw system, and to execute our commercial growth strategy as we continue to penetrate the minimally invasive spine market,” said Ken Reali, Baxano’s CEO.

The investors were not disclosed.

Baxano focuses on minimally invasive products to treat degenerative spinal conditions of the lumbar region. 

In its other recent offering, Baxano provided little information about its plans.

“We expect to use the net proceeds from this offering for general corporate purposes and working capital requirements,” the company said in its prospectus for the December offering. “Our management will have broad discretion to allocate the net proceeds from this offering.”

The credit facility will mature in either 38 months or 41 months, depending on when Baxano hits certain revenue targets. Baxano can receive three separate advances of $7.5 million,$ 2.5 million and $5.0 million. The first advance is available upon the closing of the agreement; the second and third depend on Baxano’s ability to hit revenue targets for the company’s fourth quarter of fiscal 2013 and the first quarter of fiscal 2014.

The $7.0 million from the stock purchase agreement with Lincoln Park is a maximum amount. The actual amount that Baxano will realize from selling the stock to Lincoln Park could vary, depending on the price of Baxano stock when it is purchased. The purchase agreement covers three years. Lincoln Park does not face any upper limits on the price at which it is obligated to purchase Baxano’s common stock but the company can’t sell the stock to Lincoln below a floor price of $1.00.