Xtant Medical (NYSE:XTNT) announced today that it closed its previously announced $15 million private placement.
The company announced on Monday that it 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. After deducting fees and other estimated offering expenses, Xtant recorded net proceeds of approximately $14.2 million.
The spinal disorder treatment developer plans to use proceeds for working capital and other general corporate purposes. Craig-Hallum Capital Group served as the sole placement agent for the private placement.
Xtant Medical develops a range of orthobiologics and spinal implant systems. Its portfolio features offerings that facilitate spinal fusion in complex spine, deformity and degenerative procedures.
In March, Xtant acquired the Coflex and Cofix product lines 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.
