NEW YORK - Establishment Labs Holdings Inc . (NASDAQ: NASDAQ:ESTA), a global medical technology company focused on women's health, has announced an agreement with institutional accredited investors for a private placement of common shares or pre-funded warrants, aiming to raise approximately $50 million. The transaction is scheduled to close around January 12, 2024, subject to standard closing conditions.
The preliminary unaudited revenue for the fourth quarter of 2023 is estimated to be between $31.4 million and $31.8 million, aligning with previous guidance. This contributes to an anticipated full-year revenue of $165.0 million to $165.4 million for 2023. The year-end cash position is expected at around $39.1 million, marking a decrease from the third quarter.
Juan José Chacón-Quirós, CEO of Establishment Labs, expressed optimism about the company's trajectory, citing stabilized demand and a potential return to growth in their current markets. He also highlighted progress toward positive cash flow and EBITDA, with goals to become cash flow positive by 2025. The capital from this placement is intended to support these objectives.
The securities in this private placement have not been registered under the Securities Act of 1933 or other securities laws, and therefore cannot be offered or sold in the U.S. without registration or an exemption. The company and investors have entered into a registration rights agreement to facilitate the future resale of these securities.
Establishment Labs is known for its innovative Femtech solutions, including the Motiva® devices for breast health and reconstruction, and is in the process of seeking U.S. FDA approval for its Motiva Implants®.
The information in this article is based on a press release statement.
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