In an effort to maintain its vital dental facilities and other operations within the local Costa Rican community. Costa Rican BioDental has reached an agreement to receive more than approximately $50,000.00 USD of working capital in the form of accounts receivables and cash in order to meet future operating expenses and prevent its closure.
As previously announced with the initiation of the sale process, other economic considerations of up to $50,000.00 will be included in the sale as well which will be contingent on both the short and long-term performance of the company. CRBD will acquire the assets required and expects to use the net proceeds from the sale for debt repayment, share repurchases, and strategic acquisitions.
The purchase includes:
• Costa Rican BioDental, including the BioHealth Guest House, offices, parking lots and garages
• BioHealth Kitchen
• Costa Rican BioDental Liberia
• Dental groups affiliated with Costa Rican BioDental
“We are grateful to all past and future patients for their joint efforts in preserving these high-quality dental services throughout our community and beyond which is vital for so many people around the world.” said CRBD President Victor Ronald K.M. “We are proud to protect that legacy and to ensure the continuation of that care as we continue to guarantee and enhance these cutting-edge dental services and facilities to meet the growing needs of the community, the region, and the country now and in the future.”
This agreement is an important step forward in CRBD’s ongoing transformation. The sale of Costa Rican BioDental will better position CRBD, both financially and strategically, for long-term shareholder value creation by allowing it to focus on its core dental services business and significantly reducing the Company’s leverage and future capital expenditures. This transaction also aligns its future owners to participate in the success of the organization under its future ownership.
Approved by the CRBD Board at its meeting this morning, the sale is expected to close on or after Aug 8, pending approvals. As part of the agreement, the new owner will assume the management of the facilities upon closing.