Digital Angel Corporation, specialists in animal identification and emergency identification solutions, has sold its interests in the VeriChip Corporation, which offers RFID-enabled solutions for the health care industry. The VeriChip stock, which represents a 45% share in the company, is being purchased by R&R Consulting Partners, a company controlled by Scott R. Silverman, the former CEO and chairman of VeriChip.
Silverman’s purchase of approximately 5.4 million shares of VeriChip stock from Digital Angel combines with the roughly 861,000 shares he already owned, to give him a 53% share in the business. Silverman will re-assume the role of Chairman of VeriChip’s Board of Directors and will oversee the day-to-day operations of the company.
In a separate transaction, VeriChip purchased from Digital Angel all patents related to an embedded bio-sensor system for use in humans and along with rights associated with the development of an implantable glucose-sensing microchip. Certain leases, inventory, and supplier agreements were also transferred in the deal, and full ownership of VeriChip’s VeriMed Health Link business.
Between the two transactions, Digital Angel will receive around $1.57 million in cash. Of this amount, Digital Angel plans to keep roughly $420,000, with the balance to be applied to debt repayment. VeriChip goes forward with just over $8 million in cash and restricted cash and no debts on its books.