Medovex Corp. Enters Into Modification Agreement for Previous Loan Financing With Company Co-Founder Steve Gorlin
Gorlin Named Co-Chairman and to Convert Debt to Equity at $1.75 a Share
ATLANTA, GA -- (Marketwired) -- 01/26/16 --
Medovex Corp. (NASDAQ: MDVX), a developer of medical technology products, today announced that it has entered into a modification agreement with its co-founder Steve Gorlin.
Terms of the modification agreement are as follows:
- To amend the conversion price of the promissory note issued to Mr. Gorlin on November 9, 2015 from $2.00 per share to $1.75 per share. In turn, Mr. Gorlin agreed to immediately convert the promissory note into an aggregate of 571,429 shares of its Common Stock eliminating the Company's $1,000,000 debt obligation to Mr. Gorlin.
- Mr. Gorlin irrevocably agreed to acquire 571,429 additional shares of Common Stock at a price of $1.75 per share for a total purchase price of $1,000,000 within two months of the date hereof;
- To amend the exercise price of the Warrant issued to Mr. Gorlin on November 9, 2015 from $2.20 per share to $2.00 per share.
- Mr. Gorlin agreed to act as Co-Chair of the Company's Board of Directors for a period of two years.
The proceeds will continue to be used to fund the Company's general operating needs, including ongoing development of its patented DenerveX™ System, which is designed to provide relief of pain associated with the facet joint. Lower back pain is the second most common cause of disability in the U.S. for adults. Studies indicate that 10% of the U.S. adult population suffers from lower back pain and that 31% of lower back pain is attributed to facet joint pain. The DenerveX System is not yet FDA cleared, CE marked or commercially available.
Steve Gorlin is a serial entrepreneur, who over the last 40 years founded numerous successful biotechnology and pharmaceutical companies, some of which include Hycor Biomedical, Inc. (sold to Agilent Technologies Company), Theragenics Corporation, CytRx Corporation, Medicis Pharmaceutical Corporation (sold to Valeant Pharmaceuticals International, Inc.), EntreMed, Inc., MiMedx, Inc., MRI Interventions, Dara BioSciences, Inc., Medivation, Inc. and NantKwest, Inc.
Mr. Gorlin is currently the Vice Chairman of NantKwest, and the Chairman and CEO of Aperisys and ViCapsys. He also serves on the Boards of Medovex, Nano Technology, Inc. (China) and DemeRx. Mr. Gorlin served many years on the Business Advisory Council to the Johns Hopkins and the Johns Hopkins Biomedical Engineering Advisory Board.
"I'm pleased to have entered into the modification agreement further adding to my equity investment in Medovex allowing the Company to accelerate its potential growth. I remain committed, along with management and my fellow board members, to helping build sustainable shareholder value."
Mr. Patrick Kullmann, Medovex President and COO, stated, "We're very pleased that Mr. Gorlin continues to demonstrate his support by agreeing to swap his debt for equity at above market pricing. We think it self-evident that these new terms are extremely favorable to existing shareholders."
The details of the conversion rights and other aspects of the loan transaction are set forth in the Company's 8K filed with the Securities and Exchange Commission.
Medovex was formed to acquire and develop a diversified portfolio of potentially ground breaking medical technology products. Criteria for selection include those products with potential for significant improvement in the quality of patient care combined with cost effectiveness. The Company's first pipeline product, the DenerveX device, is intended to provide long lasting relief from pain associated with facet joint syndrome at significantly less cost than currently available options. To learn more about Medovex Corp., visit www.medovex.com
Safe Harbor Statement
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), not limited to Risk Factors relating to its patent business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
Source: Medovex Corporation
Released January 26, 2016