BSD Medical Corporation Provides Progress Update on Strategic Plan
January 29 2015 - 12:45PM
- Submits non-binding term sheet for hyperthermia assets
- Commences monetization of real estate assets
- Expects 180-day grace period extension from NASDAQ
BSD Medical Corporation (Nasdaq:BSDM) (Company or BSD), a leading
provider of medical systems that utilize heat therapy to treat
cancer, today provided an update on its strategic plan for the
Company first outlined on January 12, 2015. As part of this
plan, BSD intends to exit its hyperthermia product line this year
and has submitted a non-binding term sheet for the potential sale
of its assets. Terms are still being negotiated; however, the
Company expects to close the transaction in spring 2015 if
discussions progress as planned.
"We have received clear feedback from both Wall Street and
strategic players that BSD will be a stronger and more attractive
potential partner as a pure play microwave ablation company with a
single, market leading product platform," said Clint Carnell, CEO
of BSD Medical. "We are working to divest BSD's
hyperthermia assets and obtain the highest valuation from it for
shareholders as possible, all while focusing our realigned, leaner
organization on the high growth, high margin microwave ablation
platform exclusively."
Carnell continued, "In addition to our efforts to divest
hyperthermia, we are moving swiftly, making important progress on
our strategic plan, and are evaluating every available
opportunity. For example, to capitalize on the robust local
market for commercial real estate, we have decided to monetize the
building we own in Salt Lake City by commencing a direct sale or
sale-leaseback transaction. This will unlock capital we have
tied up in real estate to help fund our growth initiatives."
Based on management's conversations to date with NASDAQ,
BSD expects to receive an additional 180-day grace period on or
around February 6, 2015 to regain compliance with the minimum bid
price requirement and avoid delisting. As stated previously,
the Company may be eligible to receive this additional grace period
provided that it 1) meets the continued listing requirement for
market value of publicly held shares and all other initial listing
standards for The Nasdaq Capital Market with the exception of the
minimum bid price requirement, and 2) provides written notice of
its intention to cure the minimum bid price deficiency during the
second 180-day grace period by effecting a reverse stock split, if
necessary.
"I am comfortable with the runway we have in front of us to
deliver shareholder value. In the coming months, we intend to
demonstrate progress to shareholders on our turnaround efforts,
including reporting on microwave ablation case numbers and
beginning to display revenue traction from our sales efforts,"
concluded Carnell.
About BSD Medical Corporation
BSD Medical Corporation develops, manufactures, markets and
services systems to treat cancer and benign diseases using heat
therapy, which is delivered using focused radiofrequency (RF) and
microwave energy. BSD's product lines include both hyperthermia and
ablation treatment systems. BSD's MicroThermX® microwave
ablation system has been developed as a stand-alone therapy to
employ precision-guided microwave energy to ablate (destroy) soft
tissue. The Company has developed extensive intellectual property,
multiple products in the market and established distribution in the
United States, Europe and Asia. Certain of the Company's products
have received regulatory approvals and clearances in the United
States, Europe and China.
For further information visit BSD Medical's website at
www.BSDMedical.com.
Forward-Looking Statements
Statements contained in this press release that are not
historical facts, including statements relating to our intent to
divest our hyperthermia business in Spring 2015, focus on microwave
ablation to create stockholder value, comply with Nasdaq continued
listing requirements, generate capital from a transaction related
to our building and pursue other strategic plans are
forward-looking statements, as defined in the Private Securities
Litigation Reform Act of 1995. All forward-looking statements are
subject to risks and uncertainties, including the risk that for a
variety of reasons we may not be able to execute on our strategic
plans, and other risks and uncertainties detailed in the Company's
filings with the Securities and Exchange Commission These
forward-looking statements speak only as of the date on which such
statements are made, and the Company undertakes no obligation to
update such statements to reflect events or circumstances arising
after such date, except as required by law.
CONTACT: Tricia Ross
Financial Profiles
310-622-8226
tross@finprofiles.com