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Accuray Gains Stockholder Approval for Strategic Financing and Board Expansion

Accuray Secures Stockholder Support for Financing Initiatives

Accuray Incorporated, a prominent player in the radiation therapy sector, recently announced that all proposals presented at their Special Meeting of Stockholders held on October 6, 2026, received unanimous approval. This development marks a significant step in the company's strategic efforts to enhance its financial standing through a key financing agreement with TCW Asset Management Company LLC, its leading lender and major shareholder.

Strategic Financial Moves

In July 2026, Accuray revealed a comprehensive strategy aimed at strengthening its financial framework. This plan includes definitive agreements with TCW Asset Management set to fortify the company's balance sheet, improve cash flow, and provide enhanced operational flexibility. Key components of this deal feature:

- The conversion of $40 million worth of term loan debt into convertible preferred stock.
- An infusion of $15 million through an equity investment from TCW.
- Access to a delayed draw term loan of up to $5 million.
- Relief from specific financial covenants until December 31, 2027.
- Implementation of governance enhancements and a reverse stock split.

These moves are designed to afford Accuray the necessary runway to pursue its strategic objectives, speed up innovation, and continue its transformational initiatives across the organization.

Approved Proposals

The stockholder meeting revealed several proposals that received consensus support, facilitating the successful execution of the TCW financial transaction. Notably:
1. Issuance of common stock as per Nasdaq Listing Rule 5635 pertaining to the financing initiative.
2. An increase in the authorized common stock shares.
3. A reverse stock split, with a potential ratio between 1-for-15 and 1-for-40, empowering the board of directors with discretion over the exact ratio and timing.

Accuray's management is currently analyzing market conditions to finalize these details, ensuring optimal timing for the reverse stock split as they aim for shareholder value creation.