The Xtant Medial (NYSEMKT: XTNT) stock has made a strong move this morning after the company announced that it regained compliance with the New York Stock Exchange listing standard.
The stock rallied by as much as 30% this morning and that comes after the Xtant stock had jumped by 150% this past Friday.
NYSE Compliance Standards Regained
This morning the company announced that it has successfully met all the listing standards of which it was in violation. In particular, Xtant also managed to successfully meet the requirements under the provisions of the NYSE American Company Guide Section 1003(a)(iii).
According to that particular provision, a share issuer needs to ensure that there is stockholders’ equity to the tune of at least $6 million. However, that rule is applicable only in the case of companies which have declared losses in the five most recent quarters.
After Xtant completed its debt restructuring process, it managed to regain compliance under NYSE rules. The news was welcomed warmly by investors as is evident from this morning’s rally and it remains to be seen if the stock can record further gains.
The debt restructuring process consummated by Xtant saw the company issue as many as 57.8 million new shares of the common stock to the lenders. The company issued it under its credit facility and in exchange for the $40.8 million worth of the outstanding principal amount in the said facility.
The latest rally in the stock may be eye-catching but on Friday, the Xtant stock had actually allied by as much as 150%. Investors piled on to the stock after the company announced that it had managed to close its debt restructuring transaction.
The medical technology company announced on Friday that it had to restructure its debt in order to bring about considerable improvements to its capital structure.
In addition to that, Xtant also stated that such a move will also help the company attract investments from participants in the capital markets and regain compliance with the NYSE rules.
Xtant announced that the restructuring strategy helped the company in cutting down its debt below $16 million under the existing credit facility. The Chief Executive Officer and President of the company Sean Browne went on to state that the cost of debt has also been reduced to ‘more serviceable levels’. It will, in turn, help Xtant in improving the ‘operating model’, he added.
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