ATI Medical Inc. announced that Michael Kaufman, chairman and the company's largest shareholder, has resigned from the board of Glendale-based ATI.
Kaufman had previously announced that he intended to make open-market purchases of up to 400,000 shares of ATI common stock. ATI, a medical equipment leasing firm, said it has been informed that Kaufman purchased more shares than he intended and was unable to pay for some of them on delivery and that some of these shares were sold by the brokerage firms from which they had been purchased.
The company said it believes that the resulting imbalance in sell orders for ATI stock may have been the cause of the recent sharp decline in stock price. On Tuesday, ATI fell $4.375 a share to $3.50. It closed Wednesday at $3.75, up 25 cents.
Kaufman has never had any responsibilities relating to the company's operations and management other than as a member of the board, ATI said. ATI said Kaufman's resignation will not have any effect on the company's operations or its plans for expansion. Kaufman will continue to act as a consultant to the company under an agreement that expires in March.
ATI also announced that Kaufman, not ATI, retained Shearson Lehman Bros. as a financial adviser, and that ATI is not involved in discussions with any parties with respect to a merger or a possible offering of debt or equity securities.