As many shareholders have seen this morning, RightSmile, Inc. (BG Medical Technologies) has filed consolidated financials for Q1 2012 & Q2 2012. This marks a significant milestone for the company in moving forward.
As referenced in the semi-annual conference call, uncommon (and occasionally unpopular) actions were necessary to correct debt that existed within the public entity. This debt position had been inherited from actions taken by the previous RightSmile management. Unfortunately, these precipitous activities threatened the going-forward stability of the entity and shareholder value. As we entered Q2 it became apparent that BG Medical needed to route our actions to solve this problem at the highest level of priority, and our corporate strategy was modified accordingly.
While I respected shareholder concerns during the recent period of limited public communication, it was necessary to take this path to achieve a positive outcome.
New agreements reached with RIGH debt holders have now prevented up to 7.5 billion shares in potential further dilution from coming to pass. In one instance, a figure was settled upon that is at 10% of the potential outstanding value, essentially negotiating a converted equity rate above market value (see financials, note #6). This is one of several notable “wins” that BG Medical has achieved while architecting a sustainable foundation.
We have emerged victorious from a dark cave. The hibernation period is now over. We have wiped out several years of debt incurred by those that came before us. I would like to leave you today with four very positive statements, all of which are now verifiable through financials statements.
- All previous authorized share increases from Q1 to Q2 were to fulfill debts made solely by prior management.
- BG Medical has nullified hundreds of thousands of dollars in past debt entered into by prior management.
- The public entity has not recently taken on new debt liabilities with past debt holders, related companies, or any other company. This position has continued throughout Q3, while BG Medical has worked to eliminate all past debts.
- BG Medical, its principals, and its employees, have not sold a single share of stock.
This is the beginning of a new and improved beginning.
Further updates are forthcoming.
As I have maintained since our first public announcement, BG Medical remains committed to building shareholder value. We have taken great steps towards fulfilling this goal. This journey can now be witnessed first-hand in today’s filings.