VeriChip's Ex-CEO buys controlling stake in company - Update

VeriChip Corp. (CHIP), which provides radio frequency identification systems for healthcare and patient-related needs, said Thursday that R&R Consulting Partners, LLC, an entity owned by VeriChip's former Chairman and Chief Executive Officer Scott Silverman, has purchased 5.4 million shares of VeriChip common stock from Digital Angel Corp. (DIGAD).

Combined with Silverman's existing holdings of 861,000 shares he now controls 6.2 million shares, or 53%, of VeriChip.

VeriChip also said Silverman will re-assume the role of Chairman, replacing Joseph Grillo, and will oversee the day-to-day operations of the company.

As of Thursday, VeriChip has more than $8 million of cash and restricted cash and no debt.

Commenting on the deal, Silverman said, "The prior controlling stockholder of the Company preferred a different path for the Company, which could have jeopardized the value of our FDA-cleared, first-of-a-kind medical device for patient identification. I couldn't let that happen."

Additionally, VeriChip said it has bought all intellectual property rights related to human implantable RFID business including glucose-sensing microchip patent from Digital Angel.

The company also received covenants from Digital Angel and its subsidiary that will permit it to use Digital Angel's intellectual property related to the company's VeriMed Health Link business without payment of ongoing royalties, as well as inventory and a limited period of technology support from Digital Angel.

VeriChip shares are currently trading at $0.2501, up $0.0001.

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