Alphatec Holdings, Inc. (“ATEC” or the “Company”) (Nasdaq: ATEC), a
provider of innovative spine surgery solutions dedicated to
revolutionizing the approach to spine surgery, today announced the
appointment of Karen McGinnis to its Board of Directors. The
Company also announced that it is joining the Russell 2000® Index
and that it made a drawdown of $10 million under its expanded
secured financing facility with Squadron Medical Finance Solutions,
LLC (“Squadron”).
Appointment of Karen McGinnis to Board
of Directors
On June 26, 2019, the Company’s Board of
Directors appointed Karen McGinnis as a member of the Board,
effective immediately. She also joins the Compensation and Special
Finance Committees of the Board.
McGinnis has over 20 years of experience in
executive operational and finance roles at international public and
private companies. She currently serves as the Chief
Accounting Officer of Illumina, Inc., a leader in sequencing- and
array-based solutions for genetic and genomic analysis. Prior
to joining Illumina, McGinnis served as Director, President and
Chief Executive Officer of Mad Catz Interactive, Inc., a global
provider of innovative interactive entertainment products.
She also served as Mad Catz’ Chief Financial Officer. Prior
to joining Mad Catz, McGinnis served as Chief Accounting Officer of
Cymer, Inc., until its acquisition in 2013. McGinnis is a
Certified Public Accountant and earned her Bachelor’s Degree in
Accounting from the University of Oklahoma.
“I am thrilled to welcome Karen to the ATEC
team,” said Pat Miles, Chairman and Chief Executive Officer.
“In addition to her finance and accounting expertise, Karen brings
deep operational experience and skills that will help drive the
refinement and execution of our growth strategies and initiatives.
Her experience at multi-national entities also will prove
valuable in the years to come as we develop and implement a
strategy to expand into new and untapped global markets.”
Addition to the Russell 2000®
Index
Effective at the close of the stock market on
Friday, June 28, 2019, ATEC will join the Russell 2000® Index,
according to a preliminary list of additions posted on June
7 as part of the 2019 Russell Index’s reconstitution.
The annual reconstitution of the broad-market
Russell 3000® Index captures 3,000 of the largest U.S. stocks,
ranking them by total market capitalization. The largest
1,000 companies in this ranking comprise the Russell
1000® Index and the next 2,000 companies constitute the
Russell 2000® Index. Membership in the Russell
2000® Index is effective until the Index’s next annual
reconstitution.
Russell indexes are widely used by investment
managers and institutional investors for index funds and as
benchmarks for active investment strategies. Approximately $9
trillion in assets are benchmarked against Russell's U.S.
indexes. For more information on the Russell 2000® Index and
the Russell indexes reconstitution, go to the “Russell
Reconstitution” section on the FTSE Russell website.
$10 Million Drawdown on Credit
Facility
As previously announced, in March 2019, the
Company closed its expanded credit facility with Squadron for up to
$30 million in additional secured financing. On June 21,
2019, the Company drew $10 million under this additional secured
financing. The funds drawn down against the facility will be
used for general corporate purposes. The additional borrowings
under the credit facility will mature in parallel with the current
secured financing from Squadron and bear interest at LIBOR plus 8%
per annum, subject to a 10% floor and a 13% ceiling.
Interest-only payments on drawn amounts are due monthly through May
2021, followed by principal payable in 29 equal monthly
installments beginning June 2021 and a lump-sum payment at maturity
in November 2023. To date, $20 million remains undrawn
on the overall credit facility.
“The funds available to us through the total
credit facility are an attractive form of capital that allow us to
continue to aggressively and opportunistically pursue and execute
on our growth strategy,” said Jeff Black, Chief Financial
Officer. “Squadron continues to be a key ATEC partner in
these efforts.”
In connection with the drawdown, ATEC issued a
warrant to Squadron and its affiliate to purchase up to 4.8 million
shares of ATEC common stock at an exercise price of $2.17.
The warrants have a seven-year term and are exercisable
immediately.
About Alphatec Holdings,
Inc.
Alphatec Holdings, Inc., through its
wholly-owned subsidiaries, Alphatec Spine,
Inc. and SafeOp Surgical, Inc., is a medical device
company that designs, develops, and markets technology for the
treatment of spinal disorders associated with disease and
degeneration, congenital deformities and trauma. ATEC’s mission is
to revolutionize the approach to spine surgery. The Company markets
its products in the U.S. via independent sales agents and a direct
sales force.
Additional information can be found
at www.atecspine.com.
Forward-Looking Statements
This press release contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve risks and uncertainty. Such
statements are based on management's current expectations and are
subject to a number of risks and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. The Company cautions investors that
there can be no assurance that actual results or business
conditions will not differ materially from those projected or
suggested in such forward-looking statements as a result of various
factors. Forward-looking statements include the references to
execution of the Company’s growth strategies and initiatives,
turning the Company into a growth organization and future market
expansion. The important factors that could cause actual
operating results to differ significantly from those expressed or
implied by such forward-looking statements include, but are not
limited to: the uncertainty of success in developing new products
or products currently in the Company’s pipeline; the uncertainties
in the Company’s ability to execute upon its strategic operating
plan; the uncertainties regarding the ability to successfully
license or acquire new products, and the commercial success of such
products; failure to achieve acceptance of the Company’s products
by the surgeon community; failure to obtain FDA or other regulatory
clearance or approval for new products, or unexpected or prolonged
delays in the process; continuation of favorable third party
reimbursement for procedures performed using the Company’s
products; unanticipated expenses or liabilities or other adverse
events affecting cash flow or the Company’s ability to successfully
control its costs or achieve profitability; uncertainty of
additional funding; the Company’s ability to compete with other
competing products and with emerging new technologies; product
liability exposure; an unsuccessful outcome in any litigation in
which the Company is a defendant; patent infringement claims;
claims related to the Company’s intellectual property and the
Company’s ability to meet its financial obligation. The words
“believe,” “will,” “should,” “expect,” “intend,” “estimate” and
“anticipate,” variations of such words and similar expressions
identify forward-looking statements, but their absence does not
mean that a statement is not a forward-looking statement. A
further list and description of these and other factors, risks and
uncertainties can be found in the Company's most recent annual
report, and any subsequent quarterly and current reports, filed
with the Securities and Exchange Commission. ATEC disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise, unless required by law.
Investor/Media Contact:Tina JacobsenInvestor
Relations(760) 494-6790ir@atecspine.com
Company Contact:Jeff BlackChief Financial
OfficerAlphatec Holdings, Inc.ir@atecspine.com
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