Establishment Labs Announces $50 Million Private Placement and Preliminary Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2023

Establishment Labs Holdings Inc. (NASDAQ: ESTA) (“Establishment Labs” or the “Company”), a global medical technology company dedicated to improving women’s health and wellness, principally in breast aesthetics and reconstruction, today announced it has entered into a securities purchase agreement with select institutional accredited investors to purchase common shares of the Company, or pre-funded warrants in lieu thereof. The Company also announced preliminary unaudited financial results for the fourth quarter and fiscal year 2023.

Preliminary unaudited revenue for the fourth quarter of 2023 is expected to be in the range of $31.4 million to $31.8 million, in line with the guidance provided on November 7 in the third quarter earnings release. Based on the expected range for fourth quarter preliminary unaudited revenue, Establishment Labs expects full-year 2023 revenue of $165.0 million to $165.4 million. The Company’s year-end 2023 cash position is expected to be approximately $39.1 million, a decrease of $12.9 million from the end of the third quarter of 2023.

Pursuant to the securities purchase agreement, Establishment Labs has agreed to sell two million common shares or, in lieu of common shares, pre-funded warrants at a price of $25.00 per share. The aggregate gross proceeds from the offering, before deducting offering expenses, are expected to be approximately $50 million. The private placement is expected to close on or about January 12, 2024, subject to the satisfaction of customary closing conditions. Establishment Labs expects to use net proceeds from the private placement for working capital and other general corporate purposes.

Juan José Chacón-Quirós, Founder and Chief Executive Officer of Establishment Labs, commented, “While the second half of our year was challenging, demand has stabilized and we are starting to see a recovery in aesthetics and in our business specifically. We expect to see a resumption of growth in our current markets this year as well as the early results of our entry into the United States and China. The significant reduction in cash use in the fourth quarter highlights our ability to drive Establishment Labs towards positive cash flow, and we expect to see continued improvement throughout 2024. We are focused on becoming EBITDA positive in 2024 and cash flow positive in 2025 — and this private placement provides us the capital to do so. Led by Nantahala Capital and RTW, and with strong participation from our other current shareholders, our investors have demonstrated their continued confidence in the future of our company.”