Bio-Dental Technologies to receive $7.5 million cash for royalty rights.SACRAMENTO Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , Calif.--(BUSINESS WIRE)--May 20, 1996--Bio-Dental Technologies Corp. (NASDAQ/NM:BDTC BDTC Base de Donnees Toponymiques du Canada (French: Database of Canada Toponymic) ) Monday announced it has signed a letter of intent which will provide the company with a lump sum Lump sum A large one-time payment of money. payment of $7.5 million in cash in lieu Cash In Lieu (CIL) In a typical exchange offer, "old" shares of the target company are exchanged for "new shares". of future royalty payments, which were due to the company from Denticator International Inc. through March 1999. Denticator, a former subsidiary of Bio-Dental, was sold in 1991, and since that time, Bio-Dental has been receiving royalties from Denticator. The company estimates that the $7.5 million payment approximates the net-present-value of Bio-Dental's projected future royalties, including a scheduled lump-sum payment that would have been due in April 1999. The letter of intent is part of a transaction in which Denticator International Inc. will be acquired by Young Innovations Inc., located in Earth City, Mo. The transaction is subject to due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and other contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. and is scheduled to close within the next 60 days. Curtis M. Rocca III, president and chief executive officer of Bio-Dental, said, "The sale of these royalty payments will strengthen the company's balance sheet, eliminate all of our outstanding bank debt and notes payable, and provide us with the highest cash balance that we have ever had." Bio-Dental Technologies Corp. manufactures, markets, and distributes dental supplies and proprietary, high-technology dental products to the $2 billion professional dental supply market in all 50 states and Canada. CONTACT: Bio-Dental Technologies Inc., Sacramento Curtis M. Rocca III, 916/638-8147 or Silverman Heller Associates Eugene G. Heller, 310/208-2550 |
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