Entellus Medical Nets $37M In Stock Sale
Entellus Medical Inc. raised an estimated $37.2 million through a secondary offering of the company’s stock. The company previously announced the pricing of the additional shares at $17 per share on January 25. Entellus is a medtech company with a portfolio of products to treat sinusitis.
According to a filing with the U.S. Securities and Exchange Commission, the offering closed on January 31.
According to the SEC filing: “The company currently intends to use the net proceeds from the offering for working capital purposes, which may include repayments on its credit facility, and other general corporate purposes.”
For the stock sale the company offered 2.53 million shares. Existing shareholders also sold 1.18 million shares, but the company does not receive any proceeds from those sales.
On Tuesday the company’s stock closed at $17.11 per share. At the end of January, the stock was down approximately 10 percent for the year so far.
Plymouth-based Entellus was founded in 2006. The company went public in January 2015, raising $81 million from its initial public offering. Since the beginning of 2015 only two Minnesota companies have completed IPOs. Minneapolis-based Tactile Systems Technology Inc., another medtech firm, went public in August 2016.
Last week, TCB reported that Roseville-based EnteroMedics Inc. raised $19 million through a recent secondary stock offering.
Entellus reported revenue of $61.6 million for 2015 but also posted a net loss of $18.3 million for the year. According to the company’s filing on its earnings for the third quarter, the company had revenue of $53.5 million for the first nine months of 2016. That’s a top line increase of 23 percent compared to 2015. The company’s guidance to Wall Street indicates that it is expecting revenue for the full year of 2016 to be in the range of $73 million to $77 million.
Entellus acquired the XeroGel product in June 2016 for $11 million in cash. XeroGel is a surgical sinus pad that is used to control bleeding for patients undergoing nasal or sinus surgery.