CLEARWATER, Fla.--(BUSINESS WIRE)--Bovie Medical Corporation (“Bovie” or the “Company”) (NYSE MKT: BVX) a maker of medical devices and supplies and the developer of J-Plasma®, a patented new surgical product, announced today that it purchased its Bulgarian R&D and manufacturing contractor (“Bovie Bulgaria”) for approximately €500,000 ($570,000) in cash, payable over a five-year period. The initial cash payment of €375,000 ($427,000) was made at closing, and the remaining cash payment of approximately €125,000 ($143,000) is due on Oct.20, 2020.
Bovie Bulgaria operates a 16,000 square foot ISO13485 certified and FDA registered manufacturing facility located in the capital city of Sofia, which houses manufacturing, development and assembly operations. The transaction will ensure that Bovie has full control over this important part of its product development and supply chain, particularly with respect to R&D for advanced surgical energy technology including key components of its J-Plasma® product line. Additionally, the transaction will drive operating efficiencies that are expected to reduce Company operating expenses in 2016 and 2017 by an aggregate net amount of approximately $850,000.
Commenting on the purchase, Robert L. Gershon, Bovie’s Chief Executive Officer, noted, “We are pleased to have completed a transaction that brings in-house the technical know-how that Bovie Bulgaria has accumulated over the last 16 years in working with Bovie Medical and enables us to form a lasting partnership with its Managing Director, Nikolay Shilev. Nikolay has entered into a five-year employment contract with Bovie Bulgaria and will receive an inducement grant of 225,922 shares of Bovie Medical restricted stock priced at $2.00 per share that will vest ratably over a five-year period. The Bulgarian manufacturing facility will be fully dedicated to our production needs and will be of immediate financial benefit to the Company. Additionally, it positions us to capture more European business for both J-Plasma® and our core product portfolio.”
About Bovie Medical Corporation
Bovie Medical Corporation is a leading maker of medical devices and supplies as well as the developer of J-Plasma®, a patented new plasma-based surgical product for cutting and coagulation. J-Plasma® utilizes a helium ionization process to produce a stable, focused beam of ionized gas that provides surgeons with greater precision, minimal invasiveness and an absence of conductive currents through the patient during surgery. Bovie Medical Corporation is also a leader in the manufacture of a range of electrosurgical products and technologies, marketed through both private labels and the Company’s own well-respected brands (Bovie®, Aaron®, IDS™ and ICON™) to distributors worldwide. The Company also leverages its expertise through original equipment manufacturing (OEM) agreements with other medical device manufacturers. For further information about the Company’s current and new products, please refer to the Investor Relations section of Bovie Medical Corporation’s website www.boviemed.com
Cautionary Statement on Forward-Looking Statements
Certain matters discussed in this release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this release can be found in the Company’s filings with the Securities and Exchange Commission including the Company’s Report on Forms 10-Q for the quarters ended June 30, 2015, and March 31, 2015 respectively. For forward-looking statements in this release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.