Biote Announces Definitive Settlement With Founder, Company To Repurchase All Of Founder's 18.4M Shares At $4.17 Per Share
Portfolio Pulse from Benzinga Newsdesk
Biote Corp. (NASDAQ:BTMD) has reached a settlement with its founder, Dr. Gary S. Donovitz, to repurchase 18.4 million shares at $4.17 per share, totaling approximately $76.9 million. This settlement resolves ongoing litigation and includes a mutual release of claims, termination of the founder advisory agreement, and non-compete and non-solicitation agreements. The repurchase is structured over a three-year period, with the first transaction of approximately $32.2 million completed on April 26, 2024. Biote believes this action will be accretive to shareholder value and allows the company to focus on strategic objectives and growth.
April 29, 2024 | 8:20 pm
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Biote Corp. settles litigation with founder, repurchasing 18.4M shares at $4.17/share, aiming to enhance shareholder value and focus on growth.
The settlement and share repurchase plan resolve ongoing litigation, potentially removing a significant overhang on the stock and signaling confidence in the company's financial health and future prospects. The structured repurchase plan over three years demonstrates a commitment to enhancing shareholder value while maintaining operational liquidity. This strategic move could positively influence investor sentiment and stock price in the short term.
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