Biote Corp. (NASDAQ: BTMD) has announced a significant agreement that will see the repurchase of approximately 8.3 million shares and the cancellation of about 4.0 million earnout shares, totaling $60 million. This move comes as part of the company's effort to resolve litigation with a stockholder, Marci M. Donovitz, and is in line with its existing capital allocation strategy.
The repurchases will take place over a three-year schedule, with an average price of $7.23 per share. Approximately 4.1 million paired interests or class A shares will be repurchased for $30.0 million on or before June 28, 2024. Subsequently, about 1.4 million paired interests will be repurchased for $10.0 million on or before the 12-month, 24-month, and 36-month anniversaries of the closing date.
This agreement follows a prior agreement with Dr. Gary S. Donovitz, resulting in Biote repurchasing a total of 26.7 million shares and canceling approximately 8.0 million earnout shares for no additional consideration.
Terry Weber, Biote's CEO, expressed satisfaction with the agreement, highlighting that the repurchases align with the company's capital allocation strategy and its focus on building long-term shareholder value. Bob Peterson, the Chief Financial Officer, emphasized the advantageous use of capital in contributing to long-term shareholder value, viewing the transaction's aggregate price as attractive considering the present value of the repurchases and the benefit of eliminating earnout shares.
Biote, a leading solutions provider in preventive health care through the delivery of personalized hormone optimization and therapeutic wellness, continues to focus on driving profitable growth while establishing itself as a leader in evidence-based therapeutic wellness. Today the company's shares have moved 13.2% to a price of $7.49. Check out the company's full 8-K submission here.
