Entellus closes $40m offering

Entellus Medical (NSDQ:ENTL) said today that it closed a $37.2 million underwritten offering with existing stockholders. The company sold 2,353,530 shares of its common stock at $0.001 per share and 1,176,470 shares at $17.00 per share, according to regulatory filings.

Entellus also gave the underwriters a 30-day option to purchase an aggregate of an additional 529,500 shares.

The company said it plans to use the net proceeds form its offering for working capital purpose, including repayments on its credit facility. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Piper Jaffray & Co. acted as representatives of the underwriters in the offering.

Earlier this month, Entellus released preliminary Q4 and full year 2016 revenue results that topped expectations on the Street and showed growth of 20% compared to last year.

The company said it expects to report 4th quarter revenue between $21.5 and $21.7 million, beating analysts expectations of $21.4 million for the quarter. For the full year, Entellus said it expects to report between $75 and $75.2 million, in line with expectations on The Street.

For the 4th quarter, the company said revenue has grown 20% from 2015, while the full year shows 22% growth, according to a regulatory filing.

In June last year, Entellus paid $11 million in cash to acquire the XeroGel surgical sinus packing from Cogent Therapeutics.

In the same month, the company expanded its distribution agreement with Fiagon NA to buy and resell Fiagon’s surgical navigation systems, components and parts in the U.S. to include hospitals.

The expansion added to a pre-existing deal, inked in August 2015, which named Entellus as the exclusive distributor of certain Fiagon systems and parts to ear, nose and throat physicians’ offices, clinics and surgery centers.

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