Pharmacy Subsidiary opens New Pharmacy in Southborough MA and agrees to
open Second Pharmacy in Lynn MA
BANGOR, Maine, Feb. 15 /PRNewswire-FirstCall/ -- Nyer Medical Group, Inc. (Nasdaq: NYER) today announced that it has acquired the remaining 20% interest in its pharmacy chain subsidiary, D.A.W., Inc. d/b/a Eaton Apothecary on February 4, 2008. As consideration for the minority interest, the former minority shareholders received a cash payment of $1.75 million, convertible notes totaling $1.5 million bearing interest at 8% maturing in 3-years, a note for $350,000 bearing interest at 7% maturing in 5-years and newly issued class B-2 preferred stock with a mandatory conversion feature in 3 years and possessing of 4 million voting shares. In contemporaneous transactions, the former minority shareholders acquired 597,826 shares of the company's common stock from Nyle International for $1.1 million while the company acquired all of its outstanding shares of Class A and B preferred stock in exchange for a $400,000 promissory note bearing interest at a rate of 7% per annum maturing in 5 years. The company immediately retired the preferred shares. The pharmacy chain's primary supplier funded the cash portion of the transaction through an extension of payment terms.
Through the completion of the aforementioned transactions, the former minority shareholders now control approximately 58% of the voting power of Nyer. In a related series of events, Karen Wright resigned her position as president and CEO of Nyer while continuing as Secretary, Treasurer and Vice- President of Finance. Additionally, she, Dr. Kenneth Nyer and Mr. Donald Lewis resigned their board positions. Mark Dumouchel, president of the pharmacy chain subsidiary was voted company CEO and President, and additionally will fill the board position vacated by Dr. Kenneth Nyer. David Dumouchel, a Vice-President of the pharmacy subsidiary and brother of Mark Dumouchel, was appointed to fill the board position vacated by Karen Wright. The two Dumouchels, along with two of the remaining minority shareholders and the spouse of the third minority shareholder, signed three-year employment agreements. Mark Dumouchel will remain as President of the pharmacy segment and will serve as President and CEO of Nyer. The other individuals will serve as managers of the pharmacy segment in varying capacities.
"We are eager to be solely focused on the growth opportunities available to the company and to move forward on behalf of the company's shareholders deriving the full value inherent in the company," stated President and CEO, Mark Dumouchel. "Going forward, the company will seek to enhance its position within niche markets that are developing and expanding as a result of the aging baby-boomer population. We will also seek out opportunities in contiguous markets that will enhance the company's profitability," Dumouchel stated.
The company further announced that its pharmacy subsidiary opened its twenty-first location in December in Southborough, Massachusetts and has agreed to open its twenty-second location in Lynn Massachusetts, in March of this year. "The Southborough location will fill a void within an affluent suburb of Boston as there are no competing pharmacies within a 4 plus mile radius while the Lynn location will be opened in close collaboration with the Lynn Community Health Center and represents further expansion by the company within the Public Health Services' Section 340B purchasing program," stated company CEO, Mark Dumouchel. "Each of the two new locations represents a synergistic opportunity for the company going forward," Dumouchel stated. "We are pleased with both opportunities and the added value they represent for shareholders."
Nyer Medical Group, Inc. is a holding company that, through its subsidiaries, operates pharmacies in the greater Boston area and a medical products business that distributes and markets medical equipment and supply products to hospitals, physicians and nursing homes using relationship-based telemarketing, direct sales personnel, catalogs and the Internet. These orders are filled by the company's distribution centers located in New England and South Florida.
For further information contact Mark Dumouchel (508) 429-8506 ext 16
Safe Harbor under the Private Securities Litigation Reform Act of 1995 This press release may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All statements in this release that are not historical facts are forward-looking statements and are subject to risks and uncertainties, including enhancing the company's profitability. Among the factors that change the anticipated results are changes in the capital equity markets. Nyer does not undertake any obligation to update these forward-looking statements.
|SOURCE Nyer Medical Group, Inc.|
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