[funsec] RIP: Verichip?

[Richard M. Smith]

http://www.rfidjournal.com/article/articleview/4091/1/1/

 

May 20, 2008-VeriChip Corp. <http://www.verichipcorp.com/> , a provider of
RFID <javascript:OpenGlossary(%22RFID%22);>  systems for health-care and
asset-tracking applications, has hired investment banking firm Kaufman Bros.
<http://www.kbro.com>  to assist in the sale of its VeriMed Health Link
business, as well as the possible sale of the entire company.

 

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VeriChip's implantable business, however, only generated $3,000 in revenue
in the quarter ending March 31, 2008, during which the company saw
<javascript:OpenGlossary(%22saw%22);>  a $1.9 million loss. According to a
press statement released by Stanley, Xmark generates annual revenues in
excess of $30 million, so without that revenue, VeriChip's implantable
business would be unsustainable. 

When the Xmark sale is complete, VeriChip plans to use the $45 million from
Stanley to pay outstanding debt, then utilize $15 million of the remaining
$21.4 million to pay shareholders a special dividend. If the firm sells the
VeriMed business or the whole of VeriChip, it plans to propose a second,
special dividend to its stockholders consisting of all remaining
distributable cash then held by VeriChip.

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