Xtant Medical plans refinancing, 12-to-1 reverse stock split

January 19, 2018 By Fink Densford Leave a Comment

Xtant Medical (NYSE:XTNT) said today it launched restructuring and refinancing efforts, including a 12-to-1 reverse stock split, as it looks to reform its capital structure, meet liquidity needs, regain compliance with the NYSE and position itself for better long-term growth.

The efforts include inking a restructuring and exchange agreement with ROS Acquisition Offshore, OrbiMed Royalty Opportunities and holders of its 6% convertible senior unsecured notes due 2021, Xtant said.

The Belgrade, Mont.-based company said that as part of the eforts, it converted $1.6 million in notes issues in January 2017 into shares of common stock at a rate of roughly 76¢ per share, creating 2.3 million shares in the company.

The plan includes a 1-for-12 reverse stock split, which will put a single share of its stock in the hands of individuals for each 12 pre-split shares they owned. The reverse split is dependent upon shareholder approval, Xtant said.

Following the reverse stock split, Xtant said the remaining $70.2 million in aggregate principal amount of notes will be exchanged for issues of common stock at the exchange rate of $7.20 per share, for approximately 10.4 million new shares.

The company said that ROS and OrbiMed have agreed to purchase approximately $6.8 million shares of common stock at $7.20 per share, dependent upon the reverse stock split .

“We are pleased to have signed an agreement to restructure and recapitalize our debt with the noteholders. This will reposition the company for long-term growth and allow the company to regain compliance with the NYSE American. Furthermore, the private placement will provide the liquidity to meet our operating needs going forward,” CEO Carl O’Connell said in a press release.

Last October, Xtant Medical revealed plans to close its Dayton, Ohio facility and transition its operations to the company’s headquarters in Belgrade, Montana.

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