Shares of Establishment Labs (NASDAQ: ESTA) dropped in morning trading on Wednesday after a Hindenburg research report. This report slammed the breast implants company for a string of losses.
The report stated that ESTA has incurred losses every year after going public with the company posting a loss of $37.1 million in the second quarter versus a loss of $5.3 million in the same period last year.
The report added that currently, ESTA has only $91.3 million in cash and around $145.5 million in debt on its balance sheet and the company is burning around $14.2 million in free cash flow every quarter. At this rate, Hindenburg expects that “Establishment will continue to require capital to fuel its operations.”
