Xtant Medical (NYSE:XTNT) announced today that it agreed to sell shares of its common stock in a private placement worth $15 million.
Belgrade, Montana–based Xtant agreed with accredited investors to issue an aggregate of 20 million shares of common stock. Priced at 75¢ per share, the private placement totals gross proceeds of $15 million.
The spinal disorder treatment developer plans to use proceeds for working capital and other general corporate purposes. Xtant expects to close the placement on or about July 6, subject to customary closing conditions. Craig-Hallum Capital Group serves as the sole placement agent for the private placement.
Xtant Medical develops a portfolio of orthobiologics and spinal implant systems. Its offerings facilitate spinal fusion in complex spine, deformity and degenerative procedures.
In March, Xtant acquired two product lines — Coflex and Cofix — from Surgalign for $17 million. Surgalign designed Coflex as an interlaminar stabilization device used after an open decompression in various settings. It offers a non-fusion treatment option for lumbar spinal stenosis (LSS) patients. Coflex, the only implant with FDA premarket approval for treating LSS, is a supplemental fixation device.
Last month, Surgalign announced plans to sell its hardware and biologics units as part of a Chapter 11 bankruptcy filing. In that move, the company said it intends to sell the equity interests in non-debtor entities related to Xtant Medical. That sale totals $5 million.
