Dynatronics raises $975K in private placement

Dynatronics Corp has closed its private placement at $975,000. The lead investor was healthcare-focused private equity firm Prettybrook Partners LLC. Based in Salt Lake City, Utah, Dynatronics is a provider of medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic and podiatry sectors.

PRESS RELEASE

COTTONWOOD HEIGHTS, Utah, Dec. 30, 2016 /PRNewswire/ — Dynatronics Corporation (NASDAQ: DYNT, the “Company” or “Dynatronics”), today announced it has completed a $975,000 private placement financing led by affiliates of Prettybrook Partners LLC (collectively, “Prettybrook Partners”), a strategic private equity investor focused on the healthcare industry. This financing involved the sale and issuance of the remaining 390,000 authorized shares of the Company’s 2,000,000 shares of Series A 8% Convertible Preferred Stock (the “Series A Preferred”) designated in 2015. In June 2015, Dynatronics sold 1,610,000 shares of Series A Preferred to investors led by Prettybrook Partners. The terms of the recent offering were the same as the terms of the 2015 offering. The proceeds from the recent financing provide Dynatronics additional working capital to promote organic growth and pursue strategic acquisitions.

“The completion of this round of financing demonstrates the continued confidence Prettybrook Partners has in our growth strategy,” said Kelvyn Cullimore Jr., Dynatronics’ chairman and CEO. “We have seen significant progress over the last 18 months within our core business, and continue to see promise with our acquisition strategy. We are pleased to have the continued backing of Dr. Stuart Essig and Erin Enright from Prettybrook Partners,” Cullimore said.
Dr. Essig said, “In these last 18 months, the Company has made several transformative changes to strengthen the platform, both organically and in preparation for tactical and carefully-planned acquisitions. We have confidence in the Company’s strategy.”

The transaction is structured as a sale of 390,000 shares of Series A Preferred, and common stock purchase warrants to purchase a total of 585,000 shares of common stock. Each share of Series A Preferred is convertible into one share of the Company’s common stock and accrues an 8% cash or common equity dividend, compounded annually. The warrants have an exercise price of $2.75 per common share and are exercisable for a term of six years.

Additionally, the Company granted the investors certain registration rights in connection with the shares of common stock underlying the conversion of the preferred stock and exercise of the warrants. A Current Report on Form 8-K to be filed by the Company contains additional detail regarding the offering of these securities.

About Dynatronics
Dynatronics manufactures, markets and sells advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic and podiatry markets. More information is available at www.dynatronics.com.