- The stock price of Xtant Medical Holdings Inc (NYSEAMERICAN: XTNT) increased by 124.35%. This is why it happened.
The stock price of Xtant Medical Holdings Inc (NYSEAMERICAN: XTNT) – a global medical technology company focused on surgical solutions for the treatment of spinal disorders – increased by 124.35%. There are two main catalysts driving the stock price this week.
Investors are responding to the company’s fourth quarter and full year 2020 financial results. And the company also closed a $20 million private placement.
Q4 2020 Financial Highlights:
– Revenue for the fourth quarter of 2020 totaled $14 million, compared to $17 million for the prior-year period
– Operating expenses in the fourth quarter of 2020 totaled $8.7 million, compared to $11.7 million for the prior-year period
– Income from operations totaled $0.2 million, compared to an operating loss of $0.3 million for the prior-year period
– Net loss incurred in the fourth quarter of 2020 totaled $0.7 million, compared to a net loss of $1.6 million for the prior-year period
– Non-GAAP Adjusted EBITDA for the fourth quarter of 2020 totaled $1.1 million, compared to $1.2 million for the prior-year period
$20 Million Private Placement
Xtant Medical had announced yesterday that it closed its previously announced $20 million private placement to a single healthcare-focused institutional investor. The company had sold 8,888,890 common shares and warrants to purchase 6,666,668 common shares at a combined purchase price of $2.25 per share. The warrants have an exercise price of $2.25 per share, are immediately exercisable, and will expire five years from the date of issuance. And after deducting fees and other estimated offering expenses, the company received net proceeds of approximately $18.4 million.
Xtant Medical expects to use the net proceeds from the private placement for working capital and other general corporate purposes.
A.G.P./Alliance Global Partners served as sole placement agent for the private placement.
KEY QUOTE:
“Highlighted by consecutive quarters of positive operating income in the second half of 2020, we are pleased with our progress despite the significant impact COVID-19 had on elective procedures in our largest markets. In response to the pandemic, we took aggressive steps to align our business with the changing market environment and reduce our costs. These actions, when combined with our successful 2020 debt restructuring and recently announced $20 million private placement, provide us with positive momentum as we enter 2021.”
“This capital provides Xtant with additional resources that can be used to advance our key growth initiatives and our strategic goals, which will help us drive greater shareholder value as we focus on our mission of ‘honoring the gift of donation by allowing our patients to live as full a life as possible.’”
— Sean Browne, President and CEO of Xtant Medical Holdings
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
