Publically Traded DSO Announces Capital Raise, Debt Restructuring & New Board Members

Birner Dental Management Services, Inc. (OTCQX: BDMS), business services provider of PERFECT TEETH® dental practices, recently announced that the Company completed a private placement of $5 million of convertible senior subordinated secured notes and attached shares of Series A Convertible Preferred Stock with Palm Active Dental, LLC and Palm Global Small Cap Master Fund LP (the “Palm Investors”). A portion of the proceeds from the private placement were used to recapitalize its existing debt obligations, including the repayment of approximately $1.5 million under its credit facility with Guaranty Bank and Trust Company (the “Bank”). In addition, the Bank waived all outstanding defaults under the credit facility and extended the maturity date of the loan to 2023 and renewed the Company’s $2.0 million revolving credit facility.