Zila Takes Steps to Clear Path for Growth and Financial Stability
June 04 2008 - 12:20PM
Business Wire
Zila, Inc. (NASDAQ:ZILA) today said it has revised its agreement
with the holders of its senior secured convertible notes to modify
the EBITDA and minimum cash balance covenants. Under the new terms,
the minimum cash balance has been lowered by $1 million and the
EBITDA requirement has been moved to July 31, 2009. The
modifications did not alter the 7% interest rate of the notes nor
require a cash payment. "We believe that this action enables us to
move forward with our goal of building value for our shareholders
without the need to raise capital solely to meet a loan covenant,�
said David Bethune, chairman and chief executive officer. �As part
of our strategy to achieve this goal, we recently implemented a
number of cost reduction measures throughout the organization,
including further reductions in headcount, non-critical marketing
and general and administrative costs. �In addition to lowering
operating costs, we have developed a comprehensive plan to market
ViziLite� Plus to U.S. and overseas medical facilities at our U.S.
Military installations and U.S. Veteran�s clinics and hospitals,
through a five year U.S. Federal Supply Schedule Contract - #
V79P-3158M,� said Bethune. �Last month, we launched ViziLite Plus
in the United Kingdom and are in the process of identifying
distributors for the product in other European countries. Finally,
our direct field and telemarketing teams are now fully trained on
our entire product portfolio and continue to drive North American
sales growth and build our customer base.� �While these are highly
energetic objectives, I believe the Zila team is ready for these
challenges. I look forward to working with all of our employees to
build a value driven company,� said Bethune. About Zila, Inc. Zila,
Inc., is a fully integrated oral diagnostic company dedicated to
the prevention, detection and treatment of oral cancer and
periodontal disease. ViziLite� Plus, the company's flagship product
for the early detection of oral abnormalities that could lead to
cancer, is the first and only adjunctive medical device cleared by
the FDA for use in a population at increased risk for oral cancer.
In addition, Zila designs, manufactures and markets a suite of
proprietary products sold exclusively and directly to dental
professionals for periodontal disease, including the Rota-dent�
Professional Powered Brush, the Pro-Select Platinum� ultrasonic
scaler and a portfolio of oral pharmaceutical products for both
in-office and home-care use. This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. These forward-looking statements, including those
related to growing product sales, reducing costs and raising
capital are based largely on Zila's expectations or forecasts of
future events, can be affected by inaccurate assumptions and are
subject to various business risks and known and unknown
uncertainties, a number of which are beyond the Company's control.
Therefore, actual results could differ materially from the
forward-looking statements contained herein. A wide variety of
factors could cause or contribute to such differences and could
adversely affect revenue, profitability, cash flows and capital
needs. There can be no assurance that the forward-looking
statements contained in this press release will, in fact, transpire
or prove to be accurate. For a more detailed description of these
and other cautionary factors that may affect Zila's future results,
please refer to Zila's Form 10-K for its fiscal year ended July 31,
2007 and its Form 10-Q for the quarter ended January 31, 2008. For
more information about the company and its products, please visit
www.zila.com.
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