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BELGRADE, Mont. - Xtant Medical Holdings, Inc. (NYSE American: XTNT), a company specializing in surgical solutions for spinal and orthopedic disorders, has completed a secondary private sale of 73.1 million shares of common stock. The transaction involved shares held by OrbiMed Advisors LLC and was transferred to stakeholders including Nantahala Capital Management LLC. This strategic move, announced on Wednesday, is expected to grant Xtant enhanced operational flexibility following the termination of their investor rights agreement with OrbiMed. The company, currently valued at approximately $54 million, has seen its stock decline over 50% in the past year, according to InvestingPro data.
President and CEO of Xtant Medical, Sean Browne, expressed gratitude towards OrbiMed for their past partnership and investment. He emphasized the company’s commitment to profitability and self-sustainability, underlining a strategic shift towards higher-margin orthobiologics. Despite current challenges, including negative EBITDA of -$7.85 million in the last twelve months, the company maintains a healthy current ratio of 2.35, indicating strong short-term liquidity. Browne also highlighted upcoming product launches aimed at expanding Xtant’s offerings and driving growth. InvestingPro analysis reveals 6 additional key insights about the company’s financial health and market position.
Dan Mack of Nantahala Capital Management endorsed Xtant’s focus on innovative biologics and implant solutions, anticipating that it will benefit stockholders. Although Xtant was not a direct party to the securities purchase agreement and received no proceeds from the sale, the company has agreed to facilitate the resale of shares by registering them with the SEC.
In addition to the sale, Xtant anticipates reporting an 18% to 19% increase in revenue for the first quarter of 2025, compared to the same period last year. This projection follows the company’s impressive 28.4% revenue growth in the last twelve months, with total revenue reaching $117.27 million. This growth is attributed to the performance of orthobiologics and licensing revenue. The company’s mission revolves around honoring organ and tissue donation to enhance patients’ lives through its medical technologies. Analysts maintain a Strong Buy consensus with price targets ranging from $1.50 to $2.00 per share, according to InvestingPro’s comprehensive research report.
The press release also included a cautionary note on forward-looking statements, advising that actual results may differ due to various risk factors. These statements are based on the company’s expectations and are not guarantees of future performance.
This news is based on a press release statement from Xtant Medical Holdings, Inc.
In other recent news, Xtant Medical Holdings, Inc. reported its fourth-quarter financial results for 2024, revealing revenues of $31.5 million, which reflects a 12% increase year-over-year. However, the company’s earnings per share (EPS) of -$0.02 missed analyst forecasts by $0.01. Xtant Medical also reported a gross margin of 50.8%, a decrease from the previous year’s 61%, due to inventory charges and product optimization efforts. Despite these challenges, the company achieved a positive adjusted EBITDA of $0.4 million for the quarter.
Xtant Medical has projected revenues between $126 million and $130 million for the fiscal year 2025, indicating a growth rate of 7% to 11% year-over-year, though this is below the consensus estimate of $132.8 million. In other developments, Xtant Medical’s majority stockholders sold approximately 73.1 million shares to Nantahala Capital Management and other investors, making Nantahala the largest shareholder with a 49.1% stake. Concurrently, Xtant Medical entered into a registration rights agreement with the purchasers and amended its credit agreements with MidCap Financial Trust to accommodate the new ownership structure. BTIG analysts have adjusted their outlook on Xtant Medical, reducing the stock’s price target from $3.00 to $2.00 while maintaining a Buy rating.
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