SINTX Technologies, Inc. (NASDAQ:), a leading company in surgical and medical instruments, has made a significant announcement regarding the termination of its at-the-market (ATM) equity offering as of March 22, 2024. This decision comes after the company had previously entered into an Equity Distribution Agreement with Maxim Group LLC in February 2021, with subsequent amendments in January and October 2023, allowing for the sale of common stock up to $15 million.
The Salt Lake City-based company, incorporated in Delaware, registered sales under the ATM Agreement for an aggregate offering price of $3,115,475. These shares will be sold in accordance with Sintx's shelf registration statement on Form S-3, effective since November 27, 2023, with a prospectus supplement and accompanying prospectus filed on July 11, 2024.
While the exact number of shares to be sold and the proceeds from the sale are yet to be determined, SINTX Technologies plans to utilize the net proceeds primarily for working capital and general corporate purposes. The management has significant discretion in allocating the net proceeds, which may include potential investments or acquisitions of complementary businesses or technologies, although no specific plans or agreements are in place at the moment.
Legal counsel Dorsey & Whitney LLP has provided an opinion on the validity of the shares to be sold under the ATM Agreement, included as an exhibit in the SEC filing. It is important to note that this report does not constitute an offer to sell or a solicitation of an offer to buy the shares.
In addition to the termination of the ATM equity offering, SINTX Technologies has recently announced a 1-for-200 reverse stock split to meet Nasdaq's minimum bid price requirements. This split will not change the number of authorized shares or the par value, but will reduce the current issued and outstanding shares significantly.
Furthermore, the company has entered into a partnership with Prodways Printers SAS to supply ceramic-filled printable slurries and develop 3D printing processes for advanced technical ceramics. Despite a reduction in price target by Ascendiant Capital, the firm maintains a Buy rating on SINTX Tech's stock, indicating confidence in the company's growth potential.
These recent developments highlight SINTX Technologies' strategic initiatives to enhance its market position and adapt to evolving market conditions.
Analysis:
SINTX Technologies' decision to terminate its ATM equity offering and undergo a reverse stock split reflects the company's efforts to strengthen its financial position and align with Nasdaq's requirements. The partnership with Prodways Printers SAS shows a commitment to innovation and technological advancement in the field of technical ceramics.
Despite the price target reduction by Ascendiant Capital, maintaining a Buy rating on SINTX Tech's stock suggests a positive outlook on the company's future growth. Investors should keep an eye on how SINTX Technologies utilizes the proceeds from the equity offering termination and the potential impact on its overall performance in the market.