Why Did Xtant Medical Holdings Inc (XTNT) Shares Shoot the Lights Out Today?


Xtant Medical Holdings Inc (NYSEAMERICAN:XTNT) announced today that it received notice from the New York Stock Exchange (NYSE) on February 15, 2018 that the Company has regained compliance with the NYSE’s continued listing standards. The Company will continue to trade on the NYSE American exchange under the symbol “XTNT”.

As previously announced, on January 7, 2018, the Company entered into a Restructuring and Exchange Agreement with ROS Acquisition Offshore LP, OrbiMed Royalty Opportunities II, and all of the other holders of all of Xtant’s outstanding 6.00% convertible senior unsecured notes due 2021 on January 11, 2017. The primary purposes of Xtant’s entry into the Restructuring Agreement are to reform its capital structure, meet its liquidity needs, reposition itself for long-term growth, and regain compliance with NYSE American LLC listing standards.

Today, the Company reported a positive stockholders’ equity of approximately $47.4M as of February 15, 2018, on an unaudited, pro forma basis, which reflects Xtant’s: (i) conversion of certain 6.00% convertible senior unsecured notes due 2021, in the aggregate principal amount of $1.627 million, into a total of 2,275,745 shares of the Company’s common stock, par value $0.000001 per share, on January 17, 2018, (ii) exchange of all other outstanding Notes, in the aggregate principal amount of $70.238 million, into a total of 10,401,309 shares of Common Stock on February 14, 2018 (which occurred after the Company’s 1:12 reverse stock split), (iii) private placement of 945,819 shares of Common Stock on February 14, 2018 (which occurred after the Company’s 1:12 reverse stock split), and (iv) results of operations.

Thanks to today’s news, Xtant shares are shooting up 60% faster than Jack’s magic bean sparking right into a giant beanstalk.

Maxim analyst Anthony Vendetti recently commented, “We would continue to be buyers of XTNT as it removes part of its debt overhang by restructuring and converting its outstanding convertible notes into common shares. While the transactions would result in major dilution, we expect the company to benefit financially and operationally as the interest burden is reduced and the uncertainty surrounding its solvency is somewhat mitigated. However, the company would still have roughly $75M of outstanding debt and accrued interest at about a 15% interest rate. We believe a potential restructuring of this obligation represents the next and final step in eliminating the debt overhang that has hampered the company since its acquisition of X-Spine Systems in July 2015.”

 

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