Alphatec Holdings (ATEC) CFO O’Neill Resigns; Workforce Cut by 20%
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Alphatec Holdings, Inc. (Nasdaq: ATEC), the parent company of Alphatec Spine, Inc., a provider of spinal fusion technologies, announced changes to the Company’s executive leadership team, a reduction in the Company’s workforce and an inducement award granted to Craig Hunsaker, the Company’s newly appointed Executive Vice President, People & Culture.
Changes to the Executive Leadership Team and Reduction in Workforce
Michael O’Neill, Alphatec’s Chief Financial Officer and Treasurer, has resigned effective October 5, 2016. Dennis Nelson, the Company’s Vice President of Finance and Corporate Controller, a position he has held since 2011, will serve as the interim principal financial and accounting officer for filings under the Securities Act of 1933 and the Securities Exchange Act of 1934, while the Company executes its search for a Chief Financial Officer.
In addition, today the Company reduced its workforce by approximately 20%. This reduction in force is a significant part of a broader plan, which the Company has previously outlined, to reduce operating expenses by $20 million following the sale of its international business to Globus Medical and to more appropriately size the Company’s resources to better reflect the needs of a U.S.-focused organization.
“I would like to thank Mike for all of his contributions to Alphatec over the past six years,” said Leslie H. Cross, interim Chief Executive Officer of Alphatec Spine. “Today we have a stronger financial foundation – a much improved balance sheet and enhanced liquidity - that positions us to build to a high quality U.S.-focused business in the future.” Mr. Cross continued, “Dennis is a talented and experienced financial leader. Given his intimate knowledge of Alphatec and our financials, we are confident that Dennis will do an excellent job as we engage in our search for a CFO. We wish Mike all the best in his future endeavors. I would also like to express my appreciation to each of the employees affected by today’s announcement for their dedication and many contributions to Alphatec over the years.”
Inducement Award Granted
The Company has granted restricted stock units (RSUs) and performance stock-based awards (PSAs) to Craig Hunsaker, Alphatec’s newly appointed Executive Vice President, People & Culture. These inducement awards were approved by the Compensation Committee of the Alphatec Board of Directors on October 4, 2016, with an effective date of October 5, 2016, and granted as an inducement material to Mr. Hunsaker entering into employment with Alphatec in accordance with NASDAQ Listing Rule 5635(c)(4) under Alphatec’s 2016 Employment Inducement Award Plan (the “Plan”). The Plan was approved by Alphatec’s board of directors on October 4, 2016 and has a share reserve of 350,000 shares.
Effective October 5, 2016, Alphatec granted Mr. Hunsaker 173,322 RSUs and $750,000 (at target) of PSAs. The RSUs will vest in equal installments on each of the first three anniversaries of September 14, 2016, subject to Mr. Hunsaker’s continued service with Alphatec through the applicable vesting date. In addition, the RSUs will fully vest upon a change in control of Alphatec. The PSAs will vest in a dollar amount representing between 0% to 250% of the target value upon the earlier of September 14, 2019 or a change in control of Alphatec, subject to Mr. Hunsaker’s continued service with Alphatec through the applicable vesting date. The actual payout amount will be based on the Company’s market capitalization on the vesting date and the fair-market value of the Company’s common stock on such vesting date and will be paid in shares of Alphatec common stock.
Alphatec is providing this information in accordance with NASDAQ Listing Rule 5635(c)(4).
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