Biote Corp. (NASDAQ: BTMD), a leader in personalized hormone optimization and therapeutic wellness, has announced a binding term sheet with Dr. Gary S. Donovitz, Biote’s founder and stockholder, to settle ongoing litigation. As part of the agreement, Biote will repurchase all of the Class A common units of Biote Holdings, LLC, along with shares of Class V common stock and Class A common stock currently owned by Donovitz.
The settlement includes mutual release of all litigation claims between Donovitz and Biote, termination of the founder advisory agreement, and a two-year non-compete and non-solicitation agreement for Donovitz. Additionally, a voting agreement with customary terms acceptable to Biote will be negotiated and entered into.
Terry Weber, Biote’s CEO, expressed satisfaction with the agreement, noting that it resolves lengthy and costly litigation while facilitating the repurchase of a significant portion of outstanding shares. The company plans to execute the share repurchase, believing it will enhance shareholder value and align with strategic objectives.
Under the settlement terms, Biote will repurchase approximately 5.1 million Class A Shares and approximately 13.3 million Paired Interests from Donovitz for approximately $76.9 million over a three-year schedule. The repurchase will occur in stages, with the average price per share at $4.17.
Biote maintains its existing $20 million share repurchase authorization, separate from the agreement with Donovitz.
Biote specializes in personalized hormone optimization and therapeutic wellness solutions, aiming to transform healthy aging. The company trains medical providers to identify and treat early indicators of aging conditions, offering affordable symptom relief for patients and driving clinic success for practitioners.
