Diomed (AMEX:DIO)
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From Jul 2019 to Jul 2024
Diomed Holdings, Inc., a leading developer and marketer of minimally
invasive medical technologies, including its patented EVLT®
laser treatment for varicose veins, announced that it has entered into
an asset purchase agreement with AngioDynamics, Inc. for the sale of
Diomed’s U.S. operations for a cash purchase
price of $8 million. The assets subject to the Agreement exclude the
proceeds of Diomed’s settlement of its ‘777
patent litigation with AngioDynamics, under which AngioDynamics agreed
to pay $7 million, and the proceeds of Diomed’s
anticipated $3.6 million settlement with Vascular Solutions, Inc, now
pending bankruptcy court approval, as well as certain patents.
On March 14, 2008 Diomed Holdings and its wholly-owned subsidiary,
Diomed, Inc. filed a voluntary petition under Chapter 11 of the United
States Bankruptcy Code in the United States Bankruptcy Court for the
District of Massachusetts, Western Division. Since that time, Diomed has
been operating as a debtor-in-possession while pursuing the sale of its
U.S. operating assets. Diomed expects to complete the asset sale to
AngioDynamics within approximately 60 to 90 days and to sell its
remaining assets in due course, subject to the approval of the
bankruptcy court.
AngioDynamics has also agreed to pay $3 million in cash for certain of
the assets of Diomed Ltd, the UK subsidiary of Diomed Inc, which filed
for insolvency Administration under the laws of the United Kingdom
contemporaneously with Diomed’s bankruptcy
filing in the United States. The closing of AngioDynamics’
agreement with Diomed Holdings is conditioned upon AngioDynamics’
acquisition of Diomed Ltd’s assets and is
subject to, among other conditions, court approval and an auction
process administered by the courts, under which other interested parties
may present competing offers.
The asset purchase agreement contemplates that Diomed will use its
existing cash, receivables and ongoing revenues to fund its operations
while it operates under Chapter 11, and, if necessary, may include up to
$1.3 million in debtor-in-possession financing from AngioDynamics. The
contemplated debtor-in-possession financing will also be subject to
bankruptcy court approval.
“We believe that AngioDynamics’
acquisition of Diomed’s business provides our
loyal physician partners the best opportunity for a continuation of
superior customer service, an expanded flow of new and innovative
technologies, and continuity of laser and disposable product supply,”
stated James A. Wylie, Jr., Diomed’s Chief
Executive Officer. “Additionally, Diomed’s
EndoVenous Laser business is a terrific fit with AngioDynamics’
venous product line – a win-win for patients
and physicians alike.”
About Diomed
Diomed develops and commercializes minimal and micro-invasive medical
procedures that use its proprietary laser technologies and disposable
products. Diomed’s EVLT®
laser vein ablation procedure is used in varicose vein treatments.
Diomed also provides photodynamic therapy (PDT) for use in cancer
treatments, and dental and general surgical applications. The EVLT®
procedure and the Company’s related products
were cleared by the United States FDA in January of 2002. Along with
lasers and single-use procedure kits for its EVLT®
laser vein treatment, the Company provides its customers with state of
the art physician training and practice development support. Additional
information is available on the Company’s
website: www.evlt.com.
EVLT® is a registered trademark of Diomed
Inc., Andover, MA.
Safe Harbor
Safe Harbor statements under the Private Securities Litigation Reform
Act of 1995: Statements in this news release looking forward in time
involve risks and uncertainties, including the risks associated with
trends in the products markets, reliance on third party distributors in
various countries outside the United States, reoccurring orders under
OEM contracts, market acceptance risks, technical development risks and
other risk factors. These statements relate to our future plans,
objectives, expectations and intentions. These statements may be
identified by the use of words such as "may," "will," "should,"
"potential," "expects," "anticipates," "intends," "plans," "believes"
and similar expressions. These statements are based on our current
beliefs, expectations and assumptions and are subject to a number of
risks and uncertainties.
Moreover, our bankruptcy filing in the United States and the concurrent
administration filing of our manufacturing subsidiary in the United
Kingdom raise significant concern as to the reliability going forward of
our previous and current forward-looking statements. The bankruptcy
process will require court approval of, among other things, the
contemplated acquisition of our operating assets by AngioDynamics and
debtor-in-possession financing. Further, given recent developments, our
actual results are likely to differ materially from those discussed in
our previous financial statements. Diomed disclaims any obligation or
duty to update or correct any of its forward-looking statements.