Biote Announces Agreement To Resolve Litigation And Repurchase All Of Founder's Shares; Company To Repurchase ~18.4M Class A Shares And Paired Interests At $4.17 Per Share
Portfolio Pulse from Benzinga Newsdesk
Biote Corp. (NASDAQ:BTMD) has reached an agreement to resolve litigation with its founder, Dr. Gary S. Donovitz, by repurchasing approximately 18.4 million of its Class A shares and Paired Interests from Donovitz at $4.17 per share, totaling about $76.9 million. This settlement includes a mutual release of all claims, termination of the founder advisory agreement, and a two-year non-compete and non-solicitation agreement with Donovitz. The repurchase is supported by Biote's strong capital position and is expected to be accretive to shareholder value.
February 20, 2024 | 9:14 pm
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Biote Corp. has settled litigation with its founder by agreeing to repurchase 18.4 million shares, which is expected to be accretive to shareholder value.
The repurchase of shares by Biote Corp. is a significant move that resolves ongoing litigation, potentially reducing legal expenses and uncertainties. The buyback is expected to be accretive to shareholder value, indicating a positive outlook for the company's stock in the short term. The settlement also includes strategic agreements such as a non-compete, which could further stabilize the company's operations.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100