BIOLASE Voluntarily Initiates Chapter 11 Proceedings
BIOLASE, Inc. (NASDAQ:BIOL), a global leader in dental lasers, has voluntarily initiated Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware. The company is pursuing a sale process under Section 363 of the Bankruptcy Code and has entered into an asset purchase agreement with Sonendo Inc. for $14.0 million in cash, subject to conditions.
BIOLASE will seek Court approval to continue operating during the proceedings. The company has received a commitment from SWK Funding for no less than $2.5 million in Debtor-in-Possession (DIP) financing, including a $1.43 million interim advance, to maintain business operations. SSG Capital Advisors, has been engaged to advise on strategic options, including potential asset sales.
BIOLASE, Inc. (NASDAQ:BIOL), un leader globale nei laser dentali, ha avviato volontariamente la procedura di Chapter 11 presso il Tribunale Fallimentare degli Stati Uniti per il Distretto del Delaware. L'azienda sta perseguendo un processo di vendita ai sensi della Sezione 363 del Codice Fallimentare ed ha stipulato un accordo per l'acquisto di attivi con Sonendo Inc. per un importo di 14,0 milioni di dollari in contanti, soggetto a condizioni.
BIOLASE chiederà l'approvazione del Tribunale per continuare le operazioni durante le procedure. L'azienda ha ricevuto un impegno da SWK Funding per non meno di 2,5 milioni di dollari in finanziamenti Debtor-in-Possession (DIP), incluso un anticipo intermedio di 1,43 milioni di dollari, per mantenere le operazioni aziendali. SSG Capital Advisors è stata coinvolta per fornire consulenza sulle opzioni strategiche, comprese le potenziali vendite di attivi.
BIOLASE, Inc. (NASDAQ:BIOL), un líder global en láseres dentales, ha iniciado voluntariamente procedimientos bajo el Capítulo 11 en el Tribunal de Quiebras de los Estados Unidos para el Distrito de Delaware. La empresa está llevando a cabo un proceso de venta bajo la Sección 363 del Código de Quiebras y ha firmado un acuerdo de compra de activos con Sonendo Inc. por 14,0 millones de dólares en efectivo, sujeto a condiciones.
BIOLASE buscará la aprobación del Tribunal para seguir operando durante los procedimientos. La empresa ha recibido un compromiso de SWK Funding por no menos de 2,5 millones de dólares en financiamiento Debtor-in-Possession (DIP), incluyendo un anticipo interino de 1,43 millones de dólares, para mantener las operaciones comerciales. SSG Capital Advisors ha sido contratado para asesorar sobre opciones estratégicas, incluidas posibles ventas de activos.
BIOLASE, Inc. (NASDAQ:BIOL), 글로벌 치과 레이저의 선두주자가 델라웨어 지방법원에서 챕터 11 절차를 자발적으로 시작했습니다. 이 회사는 파산법 363조에 따른 매각 절차를 진행 중이며, Sonendo Inc.와 함께 조건부로 1,400만 달러의 현금으로 자산 구매 계약을 체결했습니다.
BIOLASE는 절차 동안 운영을 계속하기 위해 법원의 승인을 요청할 것입니다. 이 회사는 SWK Funding으로부터 최소 250만 달러의 채무자 소유 자금(DIP) 대출 약정을 받았으며, 여기에는 사업 운영 유지를 위한 143만 달러의 중간 선불이 포함됩니다. SSG Capital Advisors는 전략적 옵션, 잠재적인 자산 매각 포함,에 대한 자문을 위해 고용되었습니다.
BIOLASE, Inc. (NASDAQ:BIOL), un leader mondial des lasers dentaires, a engagé volontairement des procédures de chapitre 11 auprès du tribunal des faillites des États-Unis pour le district du Delaware. L'entreprise poursuit un processus de vente en vertu de l'article 363 du Code des faillites et a conclu un accord d'achat d'actifs avec Sonendo Inc. pour 14,0 millions de dollars en espèces, sous réserve de conditions.
BIOLASE demandera l'approbation du tribunal pour continuer à opérer pendant la procédure. L'entreprise a reçu un engagement de SWK Funding pour au moins 2,5 millions de dollars de financement Debtor-in-Possession (DIP), y compris une avance intermédiaire de 1,43 million de dollars, afin de maintenir les opérations commerciales. SSG Capital Advisors a été engagée pour conseiller sur des options stratégiques, y compris la vente potentielle d'actifs.
BIOLASE, Inc. (NASDAQ:BIOL), ein globaler Marktführer im Bereich Dentallaser, hat freiwillig Kapitel-11-Verfahren beim US-Insolvenzgericht für den Bezirk Delaware eingeleitet. Das Unternehmen verfolgt einen Verkaufsprozess gemäß Abschnitt 363 des Insolvenzgesetzes und hat eine Vereinbarung über den Erwerb von Vermögenswerten mit Sonendo Inc. über 14,0 Millionen Dollar in bar, vorbehaltlich von Bedingungen, getroffen.
BIOLASE wird die Genehmigung des Gerichts beantragen, um während der Verfahren weiterhin zu operieren. Das Unternehmen hat von SWK Funding ein Engagement für nicht weniger als 2,5 Millionen Dollar an Debtor-in-Possession (DIP)-Finanzierung erhalten, einschließlich eines zwischenzeitlichen Vorschusses von 1,43 Millionen Dollar, um die Geschäftstätigkeit aufrechtzuerhalten. SSG Capital Advisors wurde beauftragt, um strategische Optionen zu beraten, einschließlich potenzieller Vermögensverkäufe.
- Secured $14.0 million asset purchase agreement with Sonendo Inc.
- Received commitment for $2.5 million in DIP financing to continue operations
- Pursuing sale process under Section 363 of Bankruptcy Code
- Voluntarily initiated Chapter 11 bankruptcy proceedings
- Potential complete sale of company assets
- Uncertainty regarding payment or distribution to shareholders
Insights
This is a significant development for BIOLASE and its shareholders. The company's decision to file for Chapter 11 bankruptcy and pursue a sale process indicates severe financial distress. Key points to consider:
- BIOLASE has entered an asset purchase agreement with Sonendo for
$14 million in cash, plus assumption of certain liabilities. - The company secured a DIP financing commitment of at least
$2.5 million to continue operations during the bankruptcy process. - Shareholders are unlikely to receive any value for their shares, as stated in the company's announcement.
This news is highly negative for current investors. The bankruptcy filing and potential sale of assets at a relatively low value compared to previous market capitalization suggest a significant loss of equity value. The company's future as a going concern is uncertain and the outcome will depend on the bankruptcy proceedings and potential competing bids in the sale process.
The Chapter 11 filing by BIOLASE presents several legal considerations:
- The Section 363 sale process allows for a "stalking horse" bid from Sonendo, which sets a floor price but may attract higher offers.
- The
$2.5 million DIP financing, if approved by the court, will provide important working capital but also adds to the company's debt obligations. - Shareholders' interests are subordinated to creditors in bankruptcy, explaining the company's warning about potential loss of all equity value.
The court will oversee the sale process, ensuring fairness and maximization of asset value. However, the expedited nature of 363 sales can sometimes lead to outcomes that may not fully reflect long-term value. Stakeholders should closely monitor court filings and potential objections from creditors or competing bidders.
LAKE FOREST, CA / ACCESSWIRE / October 1, 2024 / BIOLASE, Inc. (NASDAQ:BIOL) (the "Company"), a global leader in dental lasers, today announced that the Company and its direct domestic subsidiaries have voluntarily initiated Chapter 11 proceedings (the "Bankruptcy Petitions") in the United States Bankruptcy Court for the District of Delaware (the "Court"). BIOLASE will seek Court approval to continue operating during the proceedings and remains focused on providing its customers with its award-winning dental lasers and customer service.
The Company also announced today that it is pursuing a sale process under Section 363 of the Bankruptcy Code in conjunction with the filing. To this end, BIOLASE has entered into an asset purchase agreement with Sonendo Inc. ("Sonendo"), a Delaware corporation, which it intends to submit to the Court. Under the agreement, Sonendo will acquire substantially all of the assets of BIOLASE through a Court-supervised auction process, subject to Bankruptcy Court approval and certain other conditions, for (a)
BIOLASE CEO John Beaver commented, "After carefully considering a range of alternatives, we are confident that pursuing Chapter 11 provides the most viable long-term path for BIOLASE to address its liquidity challenges. Our portfolio includes some of the most renowned dental laser products in the industry, and we are eager to partner with Sonendo, leveraging their extensive expertise in the dental sector to continue advancing our mission. We deeply appreciate the ongoing support from our customers and suppliers throughout this process, and we also want to recognize the dedication of our talented employees."
Additional Information
The Company also announced that it has received a commitment from SWK Funding LLC for no less than
The Company has engaged SSG Capital Advisors, LLC, to advise on its strategic options, including a potential sale of all or some of the Company's assets in connection with the Bankruptcy Petitions. Any sale would be subject to review and approval by the Bankruptcy Court and compliance with court-approved bidding procedures. The Company cannot be certain that the Company's securityholders will receive any payment or other distribution on account of their shares following such sales.
Additional information about the Bankruptcy Petitions, including access to Bankruptcy Court documents, is available online at https://dm.epiq11.com/Biolase, a website administered by Epiq Corporate Restructuring, LLC, a third-party bankruptcy claims and noticing agent.
About BIOLASE
BIOLASE is a medical device company that develops, manufactures, markets, and sells laser systems in dentistry and medicine. BIOLASE's products advance the practice of dentistry and medicine for patients and healthcare professionals. As of December 31, 2023, BIOLASE's proprietary laser products incorporate approximately 241 patented and 21 patent-pending technologies designed to provide biologically and clinically superior performance with less pain and faster recovery times. BIOLASE's innovative products provide cutting-edge technology at competitive prices to deliver superior results for dentists and patients. BIOLASE's principal products are dental laser systems that perform a broad range of dental procedures, including cosmetic and complex surgical applications. From 1998 through December 31, 2023, BIOLASE has sold over 47,700 laser systems in over 80 countries around the world. Laser products under development address BIOLASE's core dental market and other adjacent medical and consumer applications.
BIOLASE®, Waterlase® and Waterlase iPlus® are registered trademarks of BIOLASE, Inc.
Forward-Looking Statements
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology and include statements regarding: BIOLASE's future financial condition; the Company's business strategy and plans and objectives for future operations, including its intent to sell substantially all of its assets and the assets of its domestic subsidiaries during the bankruptcy case and to facilitate an orderly wind down of its operations and the operations of its domestic subsidiaries; the Company's expectations regarding the sale of any or all of the Company's assets, including pursuant to the Asset Purchase Agreement; the expected amount of proceeds pursuant to the Asset Purchase Agreement; the Company's expectations regarding the debtor-in-possession financing, including the expected amount and use of proceeds from the transaction; and the Company's ability to maintain normal operations during the chapter 11 cases. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect BIOLASE's current expectations and speak only as of the date of this release. Actual results may differ materially from BIOLASE's current expectations depending upon a number of factors. These factors include, among others, the risks associated with the potential adverse impacts of the chapter 11 filings on BIOLASE's liquidity and results of operations; changes in the Company's ability to meet its financial obligations during the chapter 11 process and to maintain contracts that are critical to its operations; the outcome and timing of the chapter 11 process and any potential sale of all or some of the Company's assets and the assets of its domestic subsidiaries; the effect of the chapter 11 filings and any potential sale of all or some of the Company's assets and the assets of its domestic subsidiaries on the Company's relationships with vendors, regulatory authorities, employees and other third parties; possible proceedings that may be brought by third parties in connection with the chapter 11 process or the potential sale of all or some of the Company's assets and the assets of its domestic subsidiaries; uncertainty regarding obtaining bankruptcy court approval of the potential sale of all or some of the Company's assets and the assets of its domestic subsidiaries or other conditions to the potential sale of all or some of the Company's assets and the assets of its domestic subsidiaries, or the debtor-in-possession financing; any purchase price adjustments to the amount of proceeds pursuant to the Asset Purchase Agreement; the timing or amount of any distributions, if any, to BIOLASE's stakeholders; and those other risks and uncertainties that are described in the "Risk Factors" section of BIOLASE's Annual Report filed on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and subsequent reports filed with the Securities and Exchange Commission. Except as required by law, BIOLASE does not undertake any responsibility to revise or update any forward-looking statements.
Investor Relations:
EVC Group LLC
Michael Polyviou / Todd Kehrli
(732) 933-2754
mpolyviou@evcgroup.com / tkehrli@evcgroup.com
Contact Information
Todd Kehrli
IR
tkehrli@evcgroup.com
SOURCE: BIOLASE, Inc.
View the original press release on accesswire.com
FAQ
Why did BIOLASE (BIOL) file for Chapter 11 bankruptcy?
What is the proposed sale price for BIOLASE (BIOL) assets in the bankruptcy proceedings?
How much DIP financing has BIOLASE (BIOL) secured during the bankruptcy process?
Will BIOLASE (BIOL) continue to operate during the Chapter 11 proceedings?
