A Medical Device Daily
American Medical Technologies (AMT; Corpus Christi, Texas) reported that it has executed a five-year exclusive licensing agreement with Spectrum Dental (Culver City, California), in exchange for a warrant granting the right to purchase 2.5 million shares of AMT's common stock at 20 cents each.
The warrant will vest over the term of the licensing agreement. The agreement includes an option, at either party's request, subject to certain restrictions, for AMT to purchase the stock of Spectrum.
Spectrum markets professional tooth whitening products, under the brand names Contrastpm, Contrastpmplus and Contrastam, to professional dental customers in the U.S. and around the world via a wholesale distribution system that includes major dental supply companies.
“Spectrum products are an excellent complement to our Hydrobrasion line of products for the general dentistry market,“ said Roger Dartt, president and CEO of AMT.
In addition, AMT signed a three-year manufacturing agreement with Westside Packaging, the current manufacturer of the Spectrum product lines.
AMT also reported the sale of its 45,000-square-foot Corpus Christi facility for $1.9 million to the Sepulveda Group and will lease the property back from the new owners.
AMT develops Hydrobrasion products designed primarily for general dentistry that are an alternative to the shot and drill. Hydrobrasion products provide dentists with a minimally invasive process that is designed to safely remove dental tooth structure and tooth decay by means of a slurry composed of air, water and micro particles.
Owens & Minor (O&M; Richmond, Virginia) reported that it has completed its previously disclosed tender offer and consent solicitation for any and all of its outstanding $200 million of 8-1/2% senior subordinated notes due 2011.
The tender offer for the existing notes, which was first disclosed earlier this month (Medical Device Daily, April 6, 2006), expired on Monday.
As of the expiration date, the company said it had accepted tenders of existing notes from holders of $199.99 million aggregate principal amount of the existing notes (99.99% of the total outstanding principal amount of the existing notes).
Lehman Brothers acted as exclusive dealer manager and solicitation agent for the tender offer and the consent solicitation. Georgeson Shareholder Communications acted as the information agent for the tender offer and consent solicitation and SunTrust Bank acted as the depositary for the tender offer and consent solicitation.
O&M is a distributor of national name-brand medical and surgical supplies and a healthcare supply chain management company.
In other dealmaking news:
• Healthia (Sunnyvale, California), the nation's first integrated comparison-shopping portal for healthcare products and services, reported that it has closed $7 million in an oversubscribed Series B round led by Trinity Ventures.
The company said the round includes strong participation from existing investors and fuels continued rapid growth and expansion of its site that empowers consumer-driven healthcare.
Healthia's site, which debuted in August 2005, is designed to enable consumers and small businesses to shop for and compare health savings accounts, health insurance plans and doctors side-by-side.
Users can also view and compare estimated prices for common medical procedures at hospitals around the country. All this is wrapped around a significant core of user-generated content, doctor reviews and feedback about the health purchases decisions that users have made – and their advice to future consumers.
“Healthia has made tremendous progress in our first year, but we also have a long road ahead of us. This round validates our vision for the company, recognizes our progress, and enables us to execute on that vision even faster,“ said Chini Krishnan, CEO and co-founder of Healthia.
• Birner Dental Management Services (BDMS; Denver), operators of Perfect Teeth dental practices, reported that on April 13, it agreed to purchase 54,250 shares of its common stock from three of its executive officers for $15 per share.
This transaction was negotiated on behalf of the company by its independent board members.
The purchase of the 54,250 shares will not be counted against the amount available to the company for repurchases under its current stock repurchase program.
As of April 17, the company had about $1.1 million authorized for repurchases under the stock repurchase program.
BDMS acquires geographically dense dental practice networks in select markets in Colorado, New Mexico and Arizona. Currently, the company manages 58 dental offices, of which 36 were acquired and 22 were de novo developments.
• Exponent (Menlo Park, California) said that its board has approved a 2-for-1 stock split, subject to shareholder approval at the 2006 annual meeting of shareholders May 24. If approved, each shareholder would receive one additional share for every outstanding share held at the record date May 24 for the stock split. Upon the completion of the split, Exponent said it would have about 16.3 million shares of common stock outstanding.
In addition, the company's board has approved a stock repurchase program that authorizes the company to purchase up to $35 million of its common stock in the open market or privately negotiated transactions.
Exponent is an engineering and scientific consulting firm. The firm's consultants analyze failures and accidents to determine their causes and provide answers to help prevent such problems.