BIOLASE Pursuing Sale Through Bankruptcy Code
Dental laser developer BIOLASE has filed for Chapter 11 bankruptcy protection, the company said in a statement this week. The company is pursuing a sale process under Section 363 of the Bankruptcy Code in conjunction with the filing. BIOLASE was previously delisted from the Nasdaq this summer.
BIOLASE has concurrently entered into a $14 million asset purchase agreement with Sonendo Inc., a California-based medical equipment manufacturer focused on dental health. Under the agreement, Sonendo will acquire substantially all of the assets of BIOLASE through a court-supervised auction process, subject to bankruptcy court approval and certain other conditions. This bid will serve as a starting point for the company's sale process, which may include other bidders.
BIOLASE has also received a commitment from SWK Funding LLC for $2.5 million in Debtor-in-Possession financing, including a $1.43 million interim advance. The funds, subject to court approval, will enable the company to operate business uninterrupted and continue to meet its financial obligations, including the timely payment of employee wages and benefits, continued servicing of customer orders and shipments, and other obligations.
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