Xtant Medical floats shares, promissory notes for interest payments

Xtant Medical (NYSE:XTNT) this week announced new rounds of fund raising, closing a direct offering of shares and the offering of new promissory notes to pay interest due on existing indenture notes.

The company said yesterday it floated 843,289 shares at 57¢ per share directly to holders of existing promissory notes.

Belgrade, Mont.-based Xtant Medical said it owes $2 million in interest on the indentured notes, of which $480,000 were paid for by the offering. All expenses for the offering will be paid by the company from cash on hand, the company added.

Today, the company announced a new offering of promissory notes to pay the existing $1.6 million owed in interest. The notes went out to ROS Acquisition Offshore and OrbiMed Royalty Opportunities, and satisfied all existing payment obligations for the company under all convertible notes.

The newly offered notes bear interest at 6% and mature on July 15, 2021. The notes are also convertible into common stock at a cost of 76¢, the company said.

Both OrbiMed and ROS deferred interest due on January 14, which was already deferred to December 31, to January 31, Xtant Medical said. The groups are also “in discussions about adding the deferred interest to the principal amount of the senior credit facility,” the company said.

Last November, Xtant Medical said it won 510(k) clearance from the FDA for its Xsert lumbar expandable interbody spine implant.

The device is designed for lumbar fusion at 1 or 2 levels and is also cleared for use with autograft or autologous bone grafts including Xtant’s 3Demin and patented OsteoSponge allografts.

Xtant said it plans to make the Xsert available in an initial product release in mid-2017.

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