Dynatronics initiated with a Buy at Roth Capital. Roth Capital analyst Scott Henry started Dynatronics with a Buy rating and $4.50 price target. The analyst cited the potential for the new management team to better utilize current assets, acquire new assets, and drive profitability. The ability to achieve these goals with minimal dilution should drive shareholder value, he contends.
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.