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Live In Play®

Updated: 14-Oct-19 14:45 ET

SDC: SmileDirectClub shares fall 12% to new record lows after California Governor Gavin Newsom signs Assembly Bill 1519 (9.81 -1.32)

AB 1519 extends the sunset date for the Dental Board of California (DBC) until January 1, 2024 and makes additional technical changes, statutory improvements, and policy reforms in response to issues raised during the DBC's sunset review process.
Commenting on the bill, SmileDirectClub stated, "[n]othing in AB1519 requires SmileDirectClub to cease or modify its operations, and nothing regarding teledentistry in this legislation can take effect until the Board has given all stakeholders the opportunity to submit public comment and debate the merits of any proposed rules with clinically-based data -- as the Governor has requested in his signing statement. To that effect, SmileDirectClub will be reaching out to our partners in the field to coordinate efforts so that a positive outcome for the industry -- and for the California consumers -- can be reached. The teledentistry industry provides access to safe, affordable and convenient dental and orthodontic care for California consumers. To be clear, SmileDirectClub will continue to legally operate in California, we will be an active participant in the administration-directed public debates surrounding teledentistry, and we will continue to provide affordable orthodontic care to thousands of smiling Californians."
In the wake of Governor Newsom signing the bill, Hindenburg Research reiterated its cautious stance and $2 price target in a series of tweets.
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