SmileDirectClub Begins Swift Wind Down of Business to Maximize Value

Decision Follows Attempts to Recapitalize Business

NASHVILLE, Tenn., Dec. 8, 2023 /PRNewswire/ — SmileDirectClub, Inc., the next generation oral care Company with the first medtech platform for teeth straightening, today announced the Company has initiated a swift wind down of its global operations to maximize value for stakeholders.

The wind down follows the Company’s efforts to market the business and implement a comprehensive recapitalization transaction meant to strengthen its balance sheet and fuel growth initiatives.

A Company spokesperson stated, “Despite a robust effort to identify prospective investors and partners to successfully recapitalize the business, we were unable to find a partner willing to infuse the necessary capital for the path ahead given the ongoing difficult macroeconomic climate and the decline in discretionary consumer spend. This is tremendously disappointing and is not the outcome any of us wanted, but absent a partner willing to support the recapitalization or a similar transaction, there is no other viable path at this time. We are incredibly grateful to our passionate and skilled team members, whose hard work and commitment helped SmileDirectClub improve over 2 million smiles and lives.”

For more information about the Company’s wind down process, visit SmileDirectClub.com.

About SmileDirectClub

SmileDirectClub, Inc. (“SmileDirectClub”) is an oral care company and creator of the first medtech platform for teeth straightening. Through its cutting-edge telehealth technology and vertically integrated model, SmileDirectClub is revolutionizing the oral care industry. SmileDirectClub’s mission is to democratize access to a smile each and every person loves by making it affordable and convenient for everyone. SmileDirectClub is headquartered in Antioch, Tennessee, USA. For more information, please visit SmileDirectClub.com.

Forward-Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Forward-looking statements generally relate to future events and include, without limitation, projections, forecasts and estimates about possible or assumed future results of the Company’s business, financial condition, liquidity, results of operations, plans, and objectives, and the ability to liquidate assets of the business. Some of these statements may include words such as “expects,” “anticipates,” “believes,” “estimates,” “targets,” “plans,” “potential,” “intends,” “projects,” and “indicates.” Although they reflect the Company’s current, good faith expectations, these forward-looking statements are not a guarantee of future performance, and involve a number of risks, uncertainties, estimates, and assumptions, which are difficult to predict. Some of the factors that may cause actual outcomes and results to differ materially from those expressed in, or implied by, the forward-looking statements include, but are not necessarily limited to: the Company’s ability to complete a liquidation process; the impact of filing the Chapter 11 Cases; the Company’s ability to address the convertible notes that mature in February 2026; the findings of the Company’s internal investigations; the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures, and the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential weaknesses of which the Company is not currently aware or which have not been detected; the impact of litigation and regulatory proceedings; the impact and timing of any cost-savings measures; the termination or modification of current contracts; laws and regulations governing remote healthcare and the practice of dentistry; the Company’s relationships with vendors; and other factors described in the Company’s filings with the Securities and Exchange Commission, including but not limited to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

 

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SOURCE SmileDirectClub, Inc.

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