Establishment Labs Holdings Inc. (NASDAQ: ESTA) saw its stock surge by 11.5% today, reaching a trading price of $31.68 per share following the announcement of a $50 million private placement and the release of preliminary unaudited financial results for the fourth quarter and fiscal year 2023.
The company revealed that the preliminary unaudited revenue for the fourth quarter of 2023 is anticipated to be in the range of $31.4 million to $31.8 million, aligning with the guidance provided in the third quarter earnings release. Based on this expected range, Establishment Labs expects full-year 2023 revenue of $165.0 million to $165.4 million, with a year-end 2023 cash position of approximately $39.1 million, reflecting a decrease of $12.9 million from the end of the third quarter of 2023.
Juan José Chacón-Quiros, the founder and chief executive officer of Establishment Labs, expressed optimism about the company's outlook, stating, "While the second half of our year was challenging, demand has stabilized and we are starting to see a recovery in aesthetics and in our business specifically. We expect to see a resumption of growth in our current markets this year as well as the early results of our entry into the United States and China."
Chacón-Quiros further commented on the company's financial position, highlighting the reduction in cash use in the fourth quarter and expressing the expectation of continued improvement throughout 2024. He emphasized the company's focus on achieving positive EBITDA in 2024 and positive cash flow in 2025, indicating that the private placement will provide the capital to support these goals.
The private placement involves the sale of two million common shares or pre-funded warrants at a price of $25.00 per share, with the aggregate gross proceeds expected to be approximately $50 million. The offering is set to close on or about January 12, 2024, subject to customary closing conditions.
Establishment Labs Holdings Inc. is a global medical technology company dedicated to improving women's health and wellness, particularly in breast aesthetics and reconstruction. The company's portfolio includes femtech solutions for breast health, breast aesthetics, and breast reconstruction, with its products being utilized in over 85 countries.
The full 8-K submission by Establishment Labs Holdings Inc. is available here.
