COTTONWOOD HEIGHTS, Utah,
July 1, 2015 /PRNewswire/ --
Dynatronics Corporation (the "Company") (NASDAQ: DYNT), a
manufacturer and marketer of rehabilitation and physical therapy
products, announced today that it has completed its $4,025,000 private placement financing led by
affiliates of Prettybrook Partners LLC (collectively,
"Prettybrook"), a strategic private equity investor focused on the
healthcare industry. The financing provides Dynatronics with
additional capital to promote organic growth and pursue potential
strategic acquisitions.
"We enthusiastically welcome our new investors from Prettybrook
and their affiliates," said Kelvyn
Cullimore Jr., Dynatronics' chairman and CEO. "Dynatronics'
shareholders represented at the meeting showed their strong support
of this transaction in its recent shareholder meeting, casting 83
percent of their votes in favor of the deal.
"With the notable backgrounds of Dr. Stuart Essig and Erin
Enright from Prettybrook, we're convinced they are the right
partners to help us make transformative improvements that will
benefit the company and its shareholders," Cullimore continued.
"Dr. Essig's background as the chairman and former CEO of Integra
LifeSciences Holdings Corporation, the executive chairman of Breg
Inc., a privately held orthopedic bracing company, managing partner
of Prettybrook Partners, LLC, and a member of the board of
directors of St. Jude Medical, Seaspine Holdings Corporation and
Owens & Minor, provides tremendous expertise and leadership in
the healthcare field. In addition, his work as a past managing
director in the mergers and acquisitions group at Goldman, Sachs
& Co. will prove invaluable as we become better known on Wall
Street.
"Ms. Enright has held numerous positions in the healthcare
industry over her career," added Cullimore. "She currently serves
as CEO of Lee Medical, a privately held medical device company as
well as managing partner of Prettybrook Partners, LLC.
Previously, she served as CFO of InfuSystem Holdings Inc., and is a
former board member of Biolase, Inc.. In addition, she was a
managing director in the equity capital markets group at Citibank,
where she worked for over a decade."
According to Dr. Essig, "Working with Kelvyn and his talented
team will provide an exciting opportunity to transform Dynatronics
into a platform for growth, both organically and through tactical
and carefully-planned acquisitions. Together, we plan to capitalize
on important healthcare trends to accelerate the Company's growth.
The process of evaluating potentially interesting add-on
opportunities has already begun and will accelerate over the coming
months."
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg
Thalmann Financial Services Inc. (NYSE MKT: LTS), acted as
exclusive placement agent in connection with the offering. FMV
Capital Markets acted as a financial advisor to Dynatronics in
connection with this offering.
The transaction is structured as a sale of approximately 1.6
million shares of Series A 8% Convertible Preferred Stock and
common stock purchase warrants to purchase approximately 2.4
million shares of common stock. Each share of preferred stock
is convertible into one share of the Company's common stock and
will accrue an 8% cash or common equity dividend, compounded
annually. The warrants have an exercise price of $2.75 and a term of six years. Additionally, the
Company has agreed to register the sale of the shares of common
stock underlying the conversion of the preferred stock and exercise
of the warrants.
About Dynatronics
Dynatronics manufactures, markets and distributes
advanced-technology medical devices, orthopedic soft goods and
supplies, treatment tables and rehabilitation equipment for the
physical therapy, sports medicine, chiropractic, podiatry, plastic
surgery, dermatology and other related medical, cosmetic and
aesthetic markets. More information regarding Dynatronics is
available at www.dynatronics.com.
Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements. Those
statements include references to the company's expectations and
similar statements. Actual results may vary from the views
expressed in the forward-looking statements contained in this
release. The development and sale of the company's products are
subject to a number of risks and uncertainties, including, but not
limited to, changes in the regulatory environment, competitive
factors, inventory risks due to shifts in market demand, market
demand for the company's products, availability of financing at
cost-effective rates, and the risk factors listed from time to time
in the company's SEC reports.
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SOURCE Dynatronics Corporation