CABG Medical Announces Plan to Cease Operations and Review Strategic Alternatives
09 Febbraio 2006 - 12:30AM
PR Newswire (US)
MINNEAPOLIS, Feb. 8 /PRNewswire-FirstCall/ -- CABG Medical, Inc.
(NASDAQ:CABG) (the Company) today announced it will substantially
reduce the scope of operations in anticipation of a possible
dissolution of the Company and concurrently initiate a formal
process to evaluate strategic alternatives. The Company will
terminate seven of its eleven full-time employees and eliminate
research and development efforts involving the Holly Graft System.
The Company also announced that it has engaged Goldsmith, Agio,
Helms, an investment bank, to assist the Company's Board of
Directors in identifying and evaluating potential strategic
alternatives. If the Company is unable to complete an acceptable
transaction, the Company intends to distribute its assets,
including existing cash and investments, to shareholders. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050114/CGF013LOGO ) Based on
information presently available to us, if we proceed with the
liquidation and dissolution of the Company, and assuming the
successful resolution of liabilities to creditors, and assuming the
successful sale or disposition of our remaining tangible and
non-cash assets, and assuming no unanticipated claims, legal
actions or other material adverse events, we believe that our
shareholders could receive a distribution of net available assets
of up to approximately $1.47 per share. To be in a position to
distribute $1.47 per share to shareholders, the Company would have
to be able to effect the dissolution generally in the time period
presently contemplated, realize from the sale of assets proceeds as
projected, settle normal course of business obligations in a
satisfactory manner, avoid protracted litigation regarding the
dissolution or other related matters and costly settlements of
contingent liabilities and higher than expected professional fees
and costs incurred in connection with the dissolution. There is no
assurance that the Company will be able to resolve all of these
uncertainties satisfactorily. However, the Company does not believe
that the distribution will be lower than $1.20 per share except for
unusual circumstances. After an exhaustive effort to evaluate
remedies for the Holly Graft System, the Company has determined
that the extensive design efforts required to re-engage human
clinical trials, coupled with the significant risk associated with
such research and development activities, does not justify further
investment in the project and continuing operations as a publicly
traded company. "I am deeply saddened by this event and regret that
we will not be able to fulfill our commitment to our investors, our
surgeons and most importantly the patients that we aspired to
treat," said Manny Villafana, Chairman and CEO. "It is well known
that the treatment of coronary artery disease is very difficult,
and ultimately our device was not successful in clinical trials.
"Our Board of Directors believes that the best option is to proceed
with an orderly wind down of operations while continuing to review
transactions which could reasonably generate greater value for the
shareholders than would a dissolution of the Company. The current
Holly Graft System would require an extensive and costly redesign
with no assurance that the redesign would be successful. "We thank
our surgeons and clinical investigators for their time and effort
on the Holly Graft project. And to our employees and business
collaborators, I want to thank them for their dedication and
focus." Safe Harbor This Press Release contains forward-looking
statements that may include statements regarding intent, belief or
current expectations of the Company and its management and they are
subject to certain risks set forth below. Such forward-looking
statements include the possibility of entering into a strategic
transaction or, in the event of a dissolution, the distribution to
shareholders of cash in the range of $1.20 - $1.47 cash per share.
There is no assurance that an acceptable transaction will be
entered into prior to a dissolution. Furthermore, the distribution
to shareholders of cash in the range of $1.20 - $1.47 per share is
an estimate only. While we believe this estimate is reasonable, the
distribution minimum could be less than $1.20 per share, depending
on the occurrence of and monetary exposure relating to certain
contingent liabilities. First Call Analyst: FCMN Contact:
mike.kramer@cabgmedical.com
http://www.newscom.com/cgi-bin/prnh/20050114/CGF013LOGO
http://photoarchive.ap.org/ DATASOURCE: CABG Medical, Inc. CONTACT:
Manny Villafana, Chairman & CEO, or John L. Babitt, President
& CFO, both of CABG Medical, Inc., +1-763-258 8005 (phone), or
+1-763-258 8008 (fax) Web site: http://www.cabgmedical.com/
Copyright
Grafico Azioni Cabg Medical (NASDAQ:CABG)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Cabg Medical (NASDAQ:CABG)
Storico
Da Set 2023 a Set 2024
Notizie in Tempo Reale relative a Cabg Medical (MM) (NASDAQ): 0 articoli recenti
Più Cabg Medical (MM) Articoli Notizie