June 07, 1999 09:33
BriteSmile, Inc. Secures $15 Million in Financing; Company Continues Successful Roll-Out of BriteSmile Teeth Whitening Centers
LESTER, Penn.--(BUSINESS WIRE)--June 7, 1999--BriteSmile, Inc. (AMEX:
BWT) today announced that it would obtain at least $15 million in financing from private investors and virtually every member of BriteSmile senior management. The financing involves the issuance of BriteSmile common stock and will be concluded in two phases. The first closing, occurring Friday, June 4, 1999, totals $12,380,000, including private investors and $3,780,000 from BriteSmile's management. The second closing, which will total no less than $2,620,000, will include additional private investors and LCO Investments Limited, the Company's largest shareholder.
The funds will be used to further the expansion of BriteSmile's retail platform. The Company continues to open BriteSmile Teeth Whitening Centers and Associated Centers in strategic locations across the U.S. as well as in various international markets, including Japan. In addition, the Company recently signed an agreement with Orthodontic Centers of America to offer the BriteSmile System in selected OCA locations.
The purchase price of the Company's restricted common stock sold in the offering is $10.95 per share, which represents a 5% discount to BriteSmile's recent 10 day average closing price. CAP Advisers Limited will provide financing for the management portion of the purchase. Three non-employee BriteSmile directors participating in the first closing of the financing will purchase the stock without a discount to the recent 10 day average closing price, or at $11.525 per share. The Company expects to complete the second phase of financing within the next several days. At an aggregate of $15 million for both closings, BriteSmile would issue approximately 1,370,000 common shares, or 7.4% of its outstanding stock after giving effect to the new issuances. |
