Centinel Spine Holdco Files to Sell Class A Common Stock
The pure-play total disc replacement company said it will use proceeds to fund sales, R&D and debt repayment.
Centinel Spine Holdco, Inc. filed a prospectus for a proposed offering of Class A Common Stock, with a planned New York Stock Exchange symbol of CNTL. The company described itself as a commercial-stage medical technology company exclusively focused on total disc replacement for the cervical and lumbar spine, a motion-preserving alternative to fusion that it said permanently eliminates movement at treated levels.
The company said its pro disc platform is designed to preserve natural spinal movement for patients with chronic neck and back pain and degenerative disc disease. It argued that fusion concentrates mechanical load on adjacent segments, can accelerate adjacent segment disease, and is associated with longer recovery and higher complication rates than TDR. It also said some existing TDR implants use mobile cores or wear-prone materials, and that some cervical and lumbar offerings have limited size ranges or indications, including a lack of FDA-approved two-level lumbar TDR implants.
Centinel LLC, the operating company, currently intends to use offering proceeds to pay transaction expenses, repay credit and loan agreements, fund sales and marketing including sales infrastructure, patient awareness and medical education, fund research and development including clinical trials, fund capital expenditures including instrument sets and implant inventory, and use the remainder for working capital and other corporate purposes. Holdco will purchase newly issued Series A Common Units in Centinel LLC with net proceeds.
The prospectus also described organizational transactions, an exchange agreement for Series B Common Units, a tax receivable agreement, and lock-up agreements for directors, officers and substantially all other stockholders. The company said it will effect those transactions before the offering is completed. Until then, the offering remains a proposal, not a priced or closed sale.