By Ciara Linnane, MarketWatch
The company’s approach claims it requires no meetings with dentists or orthodontists, although dentists and orthodontists maintain that thorough oral exams are needed before undergoing any orthodontic procedure.
“We communicated with one customer who was forced to use wire cutters to remove SDC products after he struggled to breathe,” said the report. “Review sites are replete with other horror stories of customers who had to take emergency dentistry into their own hands.”
For more on Hindenburg’s report: SmileDirectClub’s stock falls and then recovers after scathing report from short seller | Read the report at HindenburgResearch.com
SmileDirect responded on Friday with a lengthy statement that hit out at “organized dentistry” and its “anticompetitive legal actions.”
“We will vigorously defend ourselves and our business model in order to continue to pursue our company’s mission to increase access to affordable, safe and convenient teeth straightening solutions,” the statement read.
Democrats Spar Over Cost of Medicare for All
At the third Democratic debate, candidates argued over which health care plan would lower consumer costs the most. Photo: Robyn Beck/Agence France-Presse/Getty Images
The company is scheduled to report third-quarter earnings on November 12. But in its IPO filing, it disclosed sales of $423 million in 2018, up from $146 million a year earlier. But losses grew to $74.8 million in 2019 from $32.8 million in 2018, as MarketWatch reported at the time. The company had a net loss of $52.9 million in the first six months of 2019.
SmileDirect said it would use the proceeds of the deal to pay bonuses, to fund taxes and other obligations relating to its incentive bonus agreements, to redeem LLC units from pre-IPO investors and to fund a dividend to those investors, with the rest to be spent on general corporate purposes, according to the company’s prospectus.
The Renaissance IPO ETF /zigman2/quotes/207665280/composite IPO +0.78% was up 0.4% Monday and is up 23% on the year, outperforming the S&P 500’s /zigman2/quotes/210599714/realtime SPX +1.39% 17% gain and the Dow Jones Industrial Average’s /zigman2/quotes/210598065/realtime DJIA +0.83% 14% gain.