Elutia Inc. secures $15 million through stock and warrant sale

SILVER SPRING, Md. - Elutia Inc. (NASDAQ:ELUT), a medical technology company with a current market capitalization of $111.29 million according to InvestingPro, disclosed today that it has orchestrated a definitive agreement with select investors for a registered direct offering. This arrangement involves the sale of 5.52 million shares of its Class A common stock, each priced at $2.50 (compared to the current trading price of $3.22), alongside 480,000 prefunded warrants, each costing $2.499, which can be exercised for an additional 480,000 shares at $0.001 per warrant. InvestingPro data shows the company has been quickly burning through cash, with negative EBITDA of $21.02 million in the last twelve months.

The transaction is poised to inject the company with approximately $15 million in gross proceeds before accounting for placement agent fees and other related expenses. Elutia has earmarked the capital infusion for general corporate purposes, including bolstering its working capital. The offering is slated for completion around February 4, 2025, contingent on standard closing conditions.

Lake Street Capital Markets has been designated as the sole placement agent for this financial maneuver. The securities in question are being issued in accordance with Elutia’s shelf registration statement on Form S-3, which was previously filed and approved by the U.S. Securities and Exchange Commission (SEC) on September 8, 2022.

Prospective investors can access the prospectus supplement and the accompanying base prospectus that are part of the registration statement, both of which will be available on the SEC’s website and through Lake Street Capital Markets upon their filing.

The press release from Elutia also contains forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements reflect the company’s current expectations and are subject to change. The company cautions that actual outcomes could materially differ due to various risks and uncertainties.

This announcement is strictly informational and should not be construed as an offer to sell or a solicitation to buy any securities. The sale of these securities will not proceed in any jurisdiction where it would be unlawful without proper registration or qualification under the applicable securities laws. For investors seeking deeper insights into Elutia’s financial health and valuation metrics, InvestingPro offers comprehensive analysis including 6 additional ProTips and over 30 financial metrics.

The information provided is based on a press release statement from Elutia Inc.

In other recent news, Elutia Inc. disclosed mixed preliminary financial results for 2024, with net sales witnessing a minor decline of 1% compared to the previous year. The company’s net sales for 2024 were reported at $24,375,000, a slight decrease from $24,745,000 in 2023. Elutia Inc. experienced varied performances across its product lines, with women’s health products and device protection products seeing sales growth of 12% and 5%, respectively, while the cardiovascular segment reported a decrease of 42%.

Elutia Inc. also announced a significant agreement with healthcare services company Vizient, aiming to distribute Elutia’s EluPro™ Antibiotic Eluting BioEnvelope to 993 acute care facilities via the Southern Strategic Sourcing Partners (S3P). This collaboration is anticipated to accelerate Elutia’s mission to deliver transformative solutions to more patients.

Despite maintaining a healthy gross profit margin of 42%, Elutia Inc. continues to face challenges with cash burn rates. Analysts from InvestingPro project continued challenges ahead, with consensus targets ranging from $8 to $10 per share. These recent developments are based on a press release statement from Elutia Inc. and are subject to change upon finalization of their financial results.

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