Nuvectra Corporation (NASDAQ:NVTR) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05 Costs Associated with Exit or Disposal Activities.
Reduction in Force
On November 19, 2019, Nuvectra Corporation (the “Company”) began to implement a reduction in force plan that is expected to result in the termination of 89 of the Company’s employees. The reduction in force is being implemented for cost-saving purposes as the Company proceeds through its previously-announced reorganization under Chapter 11 of the U.S. Bankruptcy Code (the “Chapter 11 Case”). The Company expects that the reduction in force will be completed within approximately 60 days after it was initiated.
As a result of the reduction in force, the Company expects to generate pre-tax savings within sales and marketing, general and administrative and research and development expenses of approximately $15.9 million on an annualized basis. The Company expects to incur total non-recurring restructuring charges of approximately $0.2 million on a pre-tax basis for severance costs.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Resignation of Directors
Due to the streamlined function of the Board of Directors of the Company (the “Board”) in the Chapter 11 Case, Jon Tremmel, Thomas Zelibor, Christopher Chavez and Jane Song each resigned from the Board shortly following the commencement of the Chapter 11 Case. None of such directors resigned due to any disagreement with the Company regarding its operations, policies or practices. The size of the Board is expected to remain at four members for the remainder of the Chapter 11 Case.
Item 8.01 Other Events.
First Meeting of Creditors
The first meeting of creditors in the Chapter 11 Case is scheduled for December 20, 2019 at 10:30 a.m. CST. The meeting will take place at the Plano Event Center (use EAST Parking Lot), 2000 E. Spring Creek Pkwy, Plano, TX 75074.
Trading Symbol Change
In connection with the Chapter 11 Case, the Company’s common stock will begin trading under a new symbol, NVTRQ, effective November 22, 2019.
About Nuvectra Corporation (NASDAQ:NVTR)
Nuvectra Corporation is a neurostimulation company that focuses on helping physicians to improve the lives of people with chronic neurological conditions. The Company’s Algovita Spinal Cord Stimulation (SCS) System (Algovita) is the Company’s commercial offering and is Conformite Europeene (CE) marked and the United States Food and Drug Administration (FDA) approved for the treatment of chronic pain of the trunk and/or limbs. Its technology platform also has capabilities under development to support other neurological indications, such as sacral nerve stimulation (SNS) and deep brain stimulation (DBS). In addition, its NeuroNexus Technologies, Inc. (NeuroNexus) subsidiary designs, manufactures and markets neural-interface technologies for the neuroscience clinical research market. Its Virtis is an application of the Company’s neurostimulation technology platform and its first product for the SNS market. Its subsidiaries include Algostim, LLC (Algostim) and PelviStim LLC (PelviStim).