SALT LAKE CITY - SINTX Technologies, Inc. (NASDAQ: SINT), a company specializing in ceramic manufacturing, has announced the successful completion of its "at-the-market" equity offering, which resulted in $3.11 million in gross proceeds. The offering involved the sale of 595,560 shares at an average price of $5.23 per share, culminating in net proceeds of approximately $3.05 million for the company.
The capital raised through this offering is intended for use in general corporate activities such as capital expenditures, working capital, and potential acquisitions or business opportunities. The completion of the offering brings SINTX's total outstanding shares to 1,342,853, inclusive of the newly sold shares.
Eric K. Olson, President and CEO of SINTX Technologies, expressed satisfaction with the capital raise, noting its role in strengthening the company's balance sheet and enabling the acceleration of growth initiatives. He emphasized the importance of this financial boost in supporting ongoing projects and delivering on strategic objectives, which he anticipates will generate substantial value for shareholders.
Maxim Group LLC acted as the sole agent for the offering, facilitating the raise of equity capital on favorable terms for SINTX. This transaction was executed under the ATM program that had been previously announced by the company.
SINTX Technologies is recognized for its development and commercialization of advanced ceramic materials, with a focus on silicon nitride used in medical and technical applications. The company has been implanting its products in humans since 2008 and has expanded into new markets through strategic acquisitions and partnerships. SINTX operates manufacturing and R&D facilities in Utah and Maryland.
This press release contains forward-looking statements, including expectations about the company's positioning for emerging opportunities and its commitment to long-term shareholder value. However, these statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected.
The information provided in this article is based on a press release statement from SINTX Technologies.
In other recent news, SINTX Technologies has made considerable strides in its operations and strategic initiatives. The company announced a 1-for-200 reverse stock split to meet Nasdaq's minimum bid price requirements, reducing its outstanding shares from approximately 123 million to around 0.6 million. In a significant development, SINTX terminated its at-the-market equity offering with Maxim Group LLC, expected to register sales for an aggregate offering price of $3,115,475.
SINTX has also initiated substantial cost-cutting measures, aiming to reduce operational expenses by over 50% and extend its cash runway into 2025. The company raised capital through common stock sales and initiated discussions to reduce lease obligations.
In leadership changes, Eric K. Olson has taken over as the new CEO and President from the retiring Dr. B. Sonny Bal. Additionally, Gregg Honigblum has joined the Board of Directors as an advisor.
In an expansion of its patent portfolio, SINTX secured a Notice of Allowance from the United States Patent and Trademark Office for a patent application concerning advanced ceramic biomaterials. The patent covers innovative methods for bonding silicon nitride or its mixtures with bioactive glass to zirconia-toughened alumina substrates.
Despite Ascendiant Capital downgrading its price target for SINTX to $1.50 from $10.00, the firm maintains a Buy rating, indicating confidence in the company's growth potential. These are the recent developments concerning SINTX Technologies.
InvestingPro Insights
In light of SINTX Technologies' recent "at-the-market" equity offering, a closer look at the company's financial health and market performance through InvestingPro data and tips may provide investors with a deeper understanding of its current standing. The company, which specializes in advanced ceramics, has a market capitalization of $2.65 million, indicating a relatively small size within the ceramics manufacturing sector.
InvestingPro data shows a significant revenue growth of 39.68% for the last twelve months as of Q2 2024, with quarterly growth even higher at 69.09%. This suggests that SINTX is expanding its sales despite the challenges it faces. However, the company's P/E ratio stands at -0.08, reflecting analysts' expectations that SINTX will not turn a profit this year. Moreover, the adjusted P/E ratio for the same period is even lower at -0.31, underscoring the company's profitability concerns.
One of the InvestingPro Tips highlights that SINTX is quickly burning through cash, which could be a significant factor for potential investors to consider, especially given the company's need for capital to fund its operations and growth initiatives. Additionally, SINTX does not pay a dividend to shareholders, which may influence investment decisions for those seeking income-generating stocks.
For those interested in a deeper analysis of SINTX Technologies, there are additional InvestingPro Tips available at https://www.investing.com/pro/SINT, providing further insights into the company's stock performance and financial metrics.
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