A Medical Device Daily
Bio-Matrix Scientific Group (San Diego) said it plans a stock distribution of its Frezer subsidiary, in addition to a 1-for-10 reverse split of Bio Matrix common stock, effective at the end of the month.
A spokesperson for the company said its board plans to spin off somewhat more than 6 million shares of the common stock of Frezer to Bio-Matrix shareholders of record as of May 31. This represents one share of Frezer for every one share of Bio-Matrix Scientific Group owned after the reverse split.
Frezer, a development-stage company focused on developing stem cell therapies in the field of regenerative medicine, is headed by Geoffrey O’Neill, former scientific and medical director of Cryo-Cell International (Oldsmar, Florida). Cryo-Cell says it was one of the first companies to commercialize family banking for cord blood stem cells.
David Koos, chairman and CEO of Bio-Matrix, said he was excited about the future of Frezer. He said that while it does not reflect his company’s direct business model, “it does dovetail into our activities in adult stem cell cryogenics.”
“Dr. Geoffrey O’Neill will still be assisting Bio-Matrix in developing next-generation cryogenic stem cell banking technology,” Koos said.
He also said that Bio-Matrix’s capital restructuring would allow “greater capital financing possibilities for the future” and the number of shares of common stock outstanding after the reverse split would provide greater “flexibility.”
Bio-Matrix develops stem cell cryogenics, instrumentation for stem cell research and tissue management, non-invasive bio-systems monitoring and measuring devices, plus “niche” medical device instrumentation.
In other dealmaking news:
• Tenet Healthcare (Santa Barbara, California) said it will sell its Brotman Medical Center (Culver City, California), to a group of investors led by Prospect Medical Holdings (also Culver City), for about $11 million. The investment group includes physicians on the hospital’s staff and private investors from the community.
The 420-bed facility is one of 27 hospitals that Tenet said early last year that it was divesting. Thus far, Tenet has sold 22 of the 27 facilities, reporting that discussions with potential buyers for the remaining four hospitals are ongoing.
Jack Terner, MD, Prospect’s chairman and CEO, said the facility would be run by its existing management.
Prospect is a healthcare management organization that providing services to affiliated physician associations.
The buyers intend to continue to operate Brotman Medical Center as an acute-care facility and maintain its emergency department, according to Tenet. As part of the agreement, the buyers have committed to offer employment to substantially all employees of the hospital.
The transaction is expected to conclude by July 31 following completion of normal regulatory requirements.
• NovaMed (Chicago) reported completing the purchase of a 51% interest in the Colorado Outpatient Eye Surgery Center (Denver), an ambulatory surgery center. NovaMed thus now operates two surgery centers in Colorado. The deal valued was not disclosed.
“Now that we have completed this acquisition, we can begin working with our six new physician-partners to realize the center’s full growth potential,” said Scott Macomber, NovaMed’s executive vice president and CFO. Macomber added his company continues to pursue acquisition opportunities.
NovaMed operates ambulatory surgery centers in partnership with physicians, and now has ownership interest in 27 surgery centers in 14 states.