Irvine-based medical device maker Endologix Inc. said Thursday that it plans to raise about $20 million in a stock sale in a move that could mute concern about its past losses.
Endologix is set to sell about 6.1 million shares to several institutional investors. The company, which makes devices to treat blood vessel diseases, is selling the shares at $3.30.
Shares of Endologix were up 4.5% to $3.88 Thursday.
Endologix’s accountant in March had expressed concern about the company’s ability to continue operating without more funding, according to a regulatory filing. PricewaterhouseCoopers LLP cited Endologix’s history of losses for the opinion.
The device maker said in a release that it would use funds from the stock sale to hire more sales staff and expand its marketing for the company’s Powerlink device, which is used to treat aneurysms.
The stock offering is expected to close Friday.
“Importantly, we believe we now have sufficient capital resources to operate our business to cash flow positive operations,” said Paul McCormick, Endologix’s chief executive.
Endologix posted a net loss of $4.1 million on revenue of $2.7 million in the quarter ended March 31.
