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.