RichieBoy
4 days ago
Strategically Bjarne's back to Square One
If not overextended, what a mess. He got mauled by some rogue CEO who clearly hadn't understood Intellectual Property rights. Now he has to rebuild hence the restructuring which was what made me take the loss in the first place. I suppose he could JV with Korea . But who wants to deal with different language, different currency, different culture, different time zones on a daily basis.
Either he gets acquired, or comes up with a new gizmo. That's why I wanted to talk with the guy, truly understand his realistic options.
RichieBoy
5 days ago
Apart from BIOL purchase Agreement expenses it appears SONXD hasn't received a nickel from any Intellectual Property case as the plaintiff. In all honesty I'm surprised Bjorne raised his bid against Korean bid.
I hunch SONXD left TDO Software to Quebec's Valsoft remaining a Joint Venture Partner to go after Canada's free Dental program now in throws of building accounts for next year's federal election. Bjorne still has $15,000,000 from Valsoft purchasing TDO and joint venture agreement. I think that $15,000,000 (eventually $16,000,000) is probably earmarked for any inking of Canadian or other Valsoft business for TDO.
I can't see the BIOLASE suit as anything other than the cost of doing business except maybe a massive business write off for tax time. Bjorne could be positioning SONXD for a takeover. Frankly I'm not sure there's any other strategy. SONXD lost years of growth to BIOL receiving nothing else in return except a massive waste of time, money and effort chasing after legalese pixie dust.
just Scottie
5 days ago
βWe are pleased by the results we reported for the third quarter and remain encouraged by our continued successful execution of the strategic reset we embarked on earlier this year,β said Bjarne Bergheim, President and Chief Executive Officer of Sonendo. βWhile we are disappointed that we were not the winning bidder in the bankruptcy auction for the acquisition of Biolase, we remain committed to our customers, our shareholders and our employees. The executive team, along with our Board of Directors, continues to evaluate the various financing options and other strategic alternatives for Sonendo. We will update these important stakeholders as we make any decisions with respect to those options.β
just Scottie
5 days ago
On September 30, 2024, we entered into the Biolase Asset Purchase Agreement with the Sellers, pursuant to which, subject to the terms and conditions set forth in the Biolase Asset Purchase Agreement, we were designated as the βstalking horseβ bidder in connection with a sale of certain assets of Biolase under Section 363 of Title 11 of the United States Code for a total purchase price of (i) $14 million in cash subject to a downward working capital adjustment, (ii) the assumption of liabilities and (iii) the value of the Delaware Litigation. We delivered 10% of the Purchase Price to an escrow agent, which may be returned to us in the event of specified events, including termination of the Biolase Asset Purchase Agreement, subject to certain exceptions relating to a breach of the Biolase Asset Purchase Agreement by us.
The Sellers conducted a bankruptcy auction on November 4, 2024. Based on the result of that auction, we were not the winning bidder. Accordingly, we do not expect to proceed with the transaction described in the Biolase Asset Purchase Agreement except in the unlikely event the winning bidder fails to close. Subject to final Bankruptcy Court approval, the Biolase Asset Purchase Agreement will be terminated upon the sale of the Biolase assets to the prevailing bidder, and the Sellers will be required to pay us a break-up fee equal to 3% of the Purchase Price, plus a capped expense reimbursement of up to $575,000 and return amount of the Purchase Price that was placed in escrow at the signing of the Biolase Asset Purchase Agreement.
RichieBoy
2 weeks ago
Sonendo was involved in a trademark infringement lawsuit against Biolase and had also bid on Biolase's equipment during its Chapter 11 sale. However, a Korean company outbid Sonendo, acquiring all of Biolase's equipment .
As a result, Sonendo will no longer pursue its original plan to acquire Biolase's equipment. However, they can still explore other options to recoup their losses. Here are a few possibilities:
*Pursue the trademark infringement lawsuit*: Sonendo can continue to pursue its lawsuit against Biolase, seeking damages for alleged trademark infringement. However, the outcome of this lawsuit is uncertain, and it may not provide a direct path to recouping losses.
*Negotiate with the Korean company*: Sonendo could attempt to negotiate with the Korean company that acquired Biolase's equipment. They might explore options for collaboration, licensing, or other forms of cooperation that could help Sonendo recoup some of its losses.
*Focus on their core business*: Sonendo is a leading dental technology company, and they might choose to focus on their core business, developing and marketing their GentleWave System. By concentrating on their strengths, Sonendo can continue to grow and innovate in the dental technology space.
In terms of placing a lien on the equipment, it's unlikely that Sonendo would be able to do so, given that the equipment has been sold to a third party. However, Sonendo's legal team may be able to explore other options for securing their interests. ie CASH Perhaps SONX could partner with Korean company if palatable for Sonendo. Bjorne will continue to build the company regardless.
Quite confusing sale Scottie, mesmorizing! First SONX publicly thought they won it, then out of the blue this Korean firm laid claim to it. The only thing that might make sense to me right now is Biolase just took receipt of $20 million. Now SONX knows that Biolase has money. Question is how much? SONX could conceivably come after Biolase again, seeking cash instead of equipment. If they did, I can't see a forfeit of cash being settled quickly BIOL will hide under any Chapter 11 rock they can find. Depends on the pecking order, but my strong hunch is BIOL has cash debt creditors hence the equipment sale ordered by the Court. Creditors will likely jump ahead of SONX in the cue as to who gets paid what. We'd need to know greater details of the trademark infringement decision by the judge. How strong was the win for SONX. The judge sent SONX clammering after equipment. That tells me BIOL's outstanding cash debt was likely considerable...
This could take a while...