Schick Technologies of Long Island City, NY, has turned to an investment firm for help in pulling out of a protracted financial slump. The firm, Greystone & Co., has agreed to set up a line of credit for Schick of up to $7.5 million, and could acquire a controlling interest in the company if Schick digs deep into the available credit.
Under the terms of the deal, Greystone would receive warrants to buy up to 60% of Schick’s common stock if Schick borrows over $6 million on the line of credit. Greystone would also be able to appoint a majority of seats on Schick’s board. In addition to the line of credit, a Greystone executive, Jeffrey Slovin, has been named president of Schick.
Schick has developed digital detector technology that has applications in diagnostic x-ray, bone densitometry, and dental x-ray systems. But the firm has struggled recently, and has been forced to restate financial results for several recent quarters.
By AuntMinnie.com staff writers
December 31, 1999
Copyright © 1999 AuntMinnie.com
