AlphaTec Announces Sales Leadership Appointment and Succesful Closing of Expanded Credit Facility with Squadron Capital
Experienced spine executive David Sponsel assumes sales leadership role
CARLSBAD, Calif., April 15, 2019 (GLOBE NEWSWIRE) — 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.
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 Capital
Squadron 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.
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.