Alphatec Holdings Announces Company Updates
05 Oktober 2016 - 11:04PM
Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of
Alphatec Spine, Inc., a provider of spinal fusion technologies,
today announced changes to the Company’s executive leadership team,
a reduction in the Company’s workforce and an inducement award
granted to Craig Hunsaker, the Company’s newly appointed Executive
Vice President, People & Culture.
Changes to the Executive Leadership Team and Reduction
in Workforce
Michael O’Neill, Alphatec’s Chief Financial Officer and
Treasurer, has resigned effective October 5, 2016. Dennis
Nelson, the Company’s Vice President of Finance and Corporate
Controller, a position he has held since 2011, will serve as the
interim principal financial and accounting officer for filings
under the Securities Act of 1933 and the Securities Exchange Act of
1934, while the Company executes its search for a Chief Financial
Officer.
In addition, today the Company reduced its workforce by
approximately 20%. This reduction in force is a significant
part of a broader plan, which the Company has previously outlined,
to reduce operating expenses by $20 million following the sale of
its international business to Globus Medical and to more
appropriately size the Company’s resources to better reflect the
needs of a U.S.-focused organization.
“I would like to thank Mike for all of his contributions to
Alphatec over the past six years,” said Leslie H. Cross, interim
Chief Executive Officer of Alphatec Spine. “Today we have a
stronger financial foundation – a much improved balance sheet and
enhanced liquidity - that positions us to build to a high quality
U.S.-focused business in the future.” Mr. Cross continued, “Dennis
is a talented and experienced financial leader. Given his intimate
knowledge of Alphatec and our financials, we are confident that
Dennis will do an excellent job as we engage in our search for a
CFO. We wish Mike all the best in his future endeavors. I
would also like to express my appreciation to each of the employees
affected by today’s announcement for their dedication and many
contributions to Alphatec over the years.”
Inducement Award Granted
The Company has granted restricted stock units (RSUs) and
performance stock-based awards (PSAs) to Craig Hunsaker, Alphatec’s
newly appointed Executive Vice President, People & Culture.
These inducement awards were approved by the Compensation Committee
of the Alphatec Board of Directors on October 4, 2016, with an
effective date of October 5, 2016, and granted as an inducement
material to Mr. Hunsaker entering into employment with Alphatec in
accordance with NASDAQ Listing Rule 5635(c)(4) under Alphatec’s
2016 Employment Inducement Award Plan (the “Plan”). The Plan
was approved by Alphatec’s board of directors on October 4, 2016
and has a share reserve of 350,000 shares.
Effective October 5, 2016, Alphatec granted Mr. Hunsaker 173,322
RSUs and $750,000 (at target) of PSAs. The RSUs will vest in equal
installments on each of the first three anniversaries of September
14, 2016, subject to Mr. Hunsaker’s continued service with Alphatec
through the applicable vesting date. In addition, the RSUs will
fully vest upon a change in control of Alphatec. The PSAs will vest
in a dollar amount representing between 0% to 250% of the target
value upon the earlier of September 14, 2019 or a change in control
of Alphatec, subject to Mr. Hunsaker’s continued service with
Alphatec through the applicable vesting date. The actual payout
amount will be based on the Company’s market capitalization on the
vesting date and the fair-market value of the Company’s common
stock on such vesting date and will be paid in shares of Alphatec
common stock.
Alphatec is providing this information in accordance with NASDAQ
Listing Rule 5635(c)(4).
About Alphatec Spine
Alphatec Spine, Inc., a wholly owned subsidiary of Alphatec
Holdings, Inc., is a medical device company that designs, develops
and markets spinal fusion technology products and solutions for the
treatment of spinal disorders associated with disease and
degeneration, congenital deformities and trauma. The Company's
mission is to improve lives by delivering advancements in spinal
fusion technologies. The Company and its affiliates market products
in the U.S. via a direct sales force and independent
distributors.
Additional information can be found at
www.alphatecspine.com.
Forward Looking Statements
This press release may contain "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. Alphatec Spine 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 references to the Company's:
product development pipeline and product portfolio; ability to
streamline its cost structure; ability to improve its balance sheet
and liquidity; and ability to accelerate its revenue growth or grow
its revenues at all. Please refer to the risks detailed
from time to time in Alphatec Spine's SEC reports, including its
Annual Report Form 10-K for the year ended December 31, 2015, filed
on March 15, 2016 with the Securities and Exchange Commission, as
well as other filings on Form 10-Q and periodic filings on Form
8-K. Alphatec Spine 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.
CONTACT: Investor/Media Contact:
Christine Zedelmayer
Investor Relations
Alphatec Spine, Inc.
(760) 494-6610
czedelmayer@alphatecspine.com
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