Dynatronics CEO and President Kelvyn Cullimore will step down from those roles. He will be replaced as CEO upon appointment of a successor, which is expected by June 30. Cullimore will continue to serve as a non-employee member of the Board of Directors. As a result of Cullimore's anticipated departure, the company expects to record a charge of approximately $900K, or approximately 11c per share in the company's Q3, for the future severance payments to be made. The company also appointed Erin S. Enright as Chairman of the Board of Directors effective immediately. Erin S. Enright has been a director of the company since 2015 and has served as the Chairman of the Nominating and Governance Committee. The office of President will not be filled, due to a realignment of the operations. The company created its Therapy Products Division, comprising the operations of Dynatronics prior to the company's recent acquisitions of Hausmann Industries and Bird & Cronin, and appointed Brian Baker as President of the newly designated division. Baker will report to Cullimore until a successor CEO is appointed. Prior to joining Dynatronics, Baker served as Vice President, Global Operations for SeaSpine Holdings Corporation from July 2015 to January 2018.
Dynatronics announced a new distribution agreement for the company's Dynatronics division's products with Orthopedic Outfitters, a leading distributor of physical therapy and rehabilitation products in Northern California.
Dynatronics announced that it has signed an exclusive distribution agreement for the U.S. with Zimmer MedizinSysteme for select therapy equipment. Under the terms of the agreement, Dynatronics will be the exclusive U.S. distributor for Zimmer's ThermoPro, enPuls and OptonProTM products. Combining Dynatronics' existing modalities with these Zimmer products will provide Dynatronics customers in the U.S. with a complete range of modality products. Principally operating outside the U.S., Zimmer is the leading manufacturer of physical rehabilitation modalities in Germany, and one of the top three manufacturers of therapeutic modalities in Europe. Dynatronics has been operating as a distributor for Zimmer for the last nine months on a non-exclusive basis, building its base of experience and confidence in the products during that period.