January 25, 2026 12:11pm

AXGN closed +$0.83 or +2.59% to $32.83 with an aftermarket value of +$0.16 or +0.49%

Having increased the deal from US$85 million to US$124 M, with the funds earmarked for debt repayment, working capital, and general corporate uses.

The gross proceeds expected to be approximately $124 M (assuming no exercise of the underwriters’ option expecting to close on 1/23/26, subject to the satisfaction of customary closing conditions.

The Bottom Line:

While pricing came at a discount of US$1.86 per share to the reference level provided, a common feature in follow on offerings intended to clear a meaningful block of stock in a single transaction. <SimplyWallStreet>

AXGN has granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of its common stock at the public offering price, less underwriting discounts and commissions.

That upsized offering comes after a strong stretch for the stock, with a 90-day share price return of 80.68% and a 1-year total shareholder return of 80.98%, so recent momentum has been building rather than fading. <SimplyWallStreet>

AXGN is using the net proceeds from the offering for an early payoff and termination of its term loan facility with Oberland Capital, working capital, capital expenditures and other general corporate purposes.

  • Offering reduces interest expense and simplify the company’s capital structure, while issuing new common stock increases the share count and can dilute existing holdings.
  • Axogen’s most followed valuation narrative puts fair value at US$37, a bit above the last close at US$32.83, and anchors that view in detailed growth and margin assumptions.
  • Analysts expect earnings to reach $25.7 M (and earnings per share of $0.48) by about September 2028, up from $-4.7 M.
  • However, there is a considerable amount of disagreement amongst the analysts with the most bullish expecting $38.3 million in earnings, and the most bearish expecting $13.6 million. <SimplyWallStreet>

Wells Fargo Securities and Mizuho are acting as lead book-running managers for the proposed offering. Canaccord Genuity and Raymond James are acting as co-managers for the proposed offering.