Alphatec Announces Sales Leadership Appointment And Successful Closing of Expanded Credit Facility With Squadron Capital
15 April 2019 - 3:00PM
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 promotion of David Sponsel into the role of Executive Vice
President, Sales. The Company also announced the closing of its
expanded $30 million secured financing facility with Squadron
Medical Finance Solutions, LLC.
New Sales Leadership
Sponsel joined ATEC in May 2018 as Area Vice
President, West. With nearly two decades of sales and leadership
experience, he will advance the revitalization of the ATEC sales
channel as it continues to shift into a scalable, professional
distribution network. In conjunction with Sponsel’ s
appointment, ATEC Board member Jeff Rydin will continue to serve in
a consulting capacity throughout 2019.
Sponsel brings 13 years of spine sales and
leadership experience to the EVP, Sales position. He began his
spine career with Stryker Corporation, where he held various roles
over 10 years, first as a Sales Representative and ultimately
Senior Director of Sales, West. In addition to winning many
highly acclaimed sales and leadership awards while at Stryker,
Sponsel was responsible for leading 3 separate business unit
turnaround efforts from negative to positive growth while in the
Spine Division. Sponsel left Stryker in 2015 to join Medacta, USA,
as General Manager of its newly formed Spine Division, responsible
for sales, marketing, product management and product development in
the US. In that capacity, Sponsel was a key contributor to the
strategic formation of Medacta’s U.S. sales channel and accelerated
revenue growth.
“Dave’s astute executive leadership has already
contributed significantly to the transformation of the ATEC
distribution channel,” said Pat Miles, Chairman and Chief Executive
Officer. “He brings a unique combination of experience, having
achieved success as both an integral part of a large conglomerate’s
distribution network and as the leader of a nationwide sales
representation for a start-up operation. I’m looking forward
to continuing to work closely with him. We are clearly assembling
the most accomplished team to shape a professional, clinically
sophisticated sales channel to represent the new ATEC.”
Miles continued, “I would also like to thank
Jeff for his support as Interim Head of Sales during a critical
transitional time for ATEC. His leadership over the past few
months has been invaluable, and I know he will continue to provide
vital influence both as a consultant and as a Board member.”
Closing of Credit Facility
On March 27, 2019, the Company closed its
previously announced expanded credit facility with Squadron Medical
Finance Solutions for up to $30 million in additional secured
financing. Any amounts drawn 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. For any
draws, interest-only payments will be 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, no amounts have been drawn on
the new credit facility.
In connection with the additional financing
commitment, ATEC will issue a warrant to Squadron to purchase 4.8
million shares of ATEC common stock at an exercise price of $2.17,
at the time of the first draw under the credit facility.“We are
pleased to be expanding our partnership with Squadron,” said Jeff
Black, Chief Financial Officer. “This additional financial
commitment comes at a critical time for ATEC, and provides us with
runway to execute on our growth strategy.”
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.About Squadron Medical Finance
Solutions, LLC, a division of Squadron CapitalSquadron
Capital seeks to acquire and invest in operating companies located
both in the US and abroad. Squadron’s mission is long-term
investment (multi-generational) and assistance to the portfolio
companies’ leadership teams in the execution of their business
plans. Squadron Medical Finance Solutions assists orthopedic
OEMs in achieving their business objectives by offering financing
of surgical instruments and implant sets, or by providing debt
financing to support the broader capital requirements of growing
companies.
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 the
Company’s strategy in significantly repositioning the ATEC brand
and its sales and distribution channels, its future ability to
finance its operations, and turning the Company into a growth
organization. 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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