North American Scientific Files for Chapter 11 Reorganization & Signs New Agreement to Divest Prostate Brachytherapy Product ...
March 12 2009 - 8:00AM
Business Wire
North American Scientific, Inc. (Nasdaq:NASM) announced today
that it has filed voluntary petitions in U.S. Bankruptcy Court for
the Central District of California for reorganization under Chapter
11 of the U.S. Bankruptcy Code.
In its filing with the Bankruptcy Court, the Company cited that
its bank, pursuant to its rights under the certain lending
agreements, had reduced the Company�s borrowing ability. In
addition, Best Theratronics, Ltd. terminated the Management
Agreement and Asset Purchase Agreement entered into on February 11,
2009 and entered into a new Asset Purchase Agreement with the
Company providing for the sale of the Company�s prostate
brachytherapy product line, which reduced the sale price of the
assets to $2.5 million versus $5 million per the original Asset
Purchase Agreement.
NASM will receive $1.5 million at the closing of the transaction
and the remaining $1 million will be paid in equal installments
over the 12 month period following the closing.
NASM�s board of directors has approved the transaction and the
Company has petitioned the Court for an expedited process to sell
the Prostate assets.
"This was a very difficult but necessary decision,� said John
Rush, President & CEO. �We have been focused on realigning our
Company through the disposition of the prostate brachytherapy
business as a means to fund the clinical release of our ClearPath
breast device. However due to an unforeseen inability to continue
to access funds under our credit facility, and the terminated
management agreement, we are forced to alter our direction with the
goal of achieving the same endpoint. This filing should relieve the
immediate pressure from our creditors, and provide us the time to
complete the sale of the prostate business while we continue to
gain clinical experience with our ClearPath product line.�
North American Scientific expects that Chapter 11 protection
will enable the Company to conduct its business operations as usual
in both the prostate and breast device segments. To that end, NASM
is seeking approval from the court for a variety of First Day
Motions enabling the company to continue managing its operations in
the ordinary course.
About North American Scientific, Inc.
North American Scientific is an innovator in radiation therapy
in the fight against cancer. Its products provide physicians with
tools for the treatment of prostate and breast cancer. The Company
is gaining clinical experience with its ClearPath� multi-channel
catheter breast brachytherapy devices. They are the only such
devices approved for both high dose and continuous release, or low
dose, radiation treatments. The devices are designed to provide
flexible, precise dose conformance and an innovative delivery
system that is intended to offer the more advanced form of
brachytherapy for the treatment of breast cancer. Please visit
www.nasmedical.com for more information.
About Best Theratronics, Ltd.
Best Theratronics, Ltd. is a leader in external beam therapy and
self-contained irradiator products. External beam therapy equipment
is used in the treatment of cancer, and self-contained irradiators
are used for the irradiation of blood to prevent disease and for
research purposes. Best Theratronics along with the TeamBest family
of companies manufacture a wide array of radiotherapy products. In
addition to its facilities in Ottawa, Canada; the TeamBest family
of companies has manufacturing facilities in Dijon, France;
Springfield, Virginia; Pittsburgh, Pennsylvania, Bristol, Rhode
Island; Taunton, Massachusetts, Gilberts, Illinois; Nashville,
Tennessee; and Norcross, Georgia.
For 30 years, the TeamBest family has served the medical
community with the highest quality products and unparalleled
customer service. Our products and services exemplify our
commitment to uncompromised quality and safety. For more
information, please visit www.teambest.com.
Statements included in this release that are not historical
facts may be considered forward-looking statements that are subject
to a variety of risks and uncertainties. There are a number of
important factors that could cause actual results to differ
materially from those expressed in any forward-looking statements
made by the Company including, but not limited to, the impact of
competitive products and pricing, technological changes, changes in
relationships with strategic partners and dependence upon strategic
partners for the performance of critical activities under
collaborative agreements, the ability of the Company to
successfully directly market and sell its products, uncertainties
relating to patent protection and regulatory approval, the stable
supply of appropriate isotopes, research and development estimates,
market opportunities, risks associated with strategic opportunities
or acquisitions the Company may pursue and the risk factors
included in the Company�s filings with the Securities and Exchange
Commission. Any forward-looking statements contained in this news
release speak only as of the date of this release, and the Company
undertakes no obligation to revise or update any forward-looking
statements, whether as a result of new information, future results
or otherwise.
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