Just over a week ago we covered the news that MIS Spine company Baxano Surgical, Inc., was reviewing its strategic alternatives, which sounded like it was touting for a sale. The company has now issued a new press release that does little to disavow us of that notion.
Baxano Surgical Inc., formed from the acquisition of Baxano, Inc. by TranS1 eighteen months ago, told the world last week that it had engaged a financial advisor to steer it through its strategic alternatives. That looked for all the world like the company was putting itself on the auctioneer’s block, and indeed a follow-up release reinforces the suggestion that it is ready to sell. The release states that “the Company has completed a recent subordinated convertible note financing of approximately $1.5 million to extend its cash runway.
That buys it some time, as does a streamlining of its business to reduce its operating expenses while maintaining its commercial operations.
What happens next is anyone’s guess, but it doesn’t sound like we’ll hear more until something more concrete eventuates. Baxano Surgical says it does not plan to disclose or comment on developments regarding its strategic alternatives review process until further disclosure is deemed necessary or appropriate.
“We have been able to complete a needed financing that, together with the restructuring of our operations, gives us a cash runway to continue to pursue our strategic alternatives with Houlihan Lokey,” stated Ken Reali, President and CEO of Baxano Surgical.
Source: Baxano Surgical, Inc., Globe Newswire