Vista Medical (NASDAQ:VMTIC)
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Vista Medical Announces Completion of Private Placement
CARLSBAD, Calif., May 27 /PRNewswire-FirstCall/ -- Vista Medical Technologies,
Inc. (NASDAQ:VMTIC), today announced that it has completed a private placement
of common stock and warrants to selected institutional and accredited
investors. The investment round was led by MedCap Management and Research LLC.
Dawson James Securities through ViewTrade Financial acted as exclusive
financial advisor to, and as sole placement agent for, Vista Medical.
The Company sold 5,454,544 units of its securities for $0.85 per unit, each
unit consisting of one share of common stock and one warrant to purchase
one-half share of common stock, for aggregate gross proceeds of approximately
$4.6 million or $4.1 million net of expenses. The warrants are exercisable at
a price of $0.95 per share. The terms of this financing were approved at the
annual meeting of Vista Medical's stockholders held May 24, 2004.
The Company has agreed to file a registration statement covering the shares of
common stock and the common stock underlying the warrants on or before June 25,
2004.
The Company intends to use substantially all of the net proceeds from the
private placement to fund the development of its morbid obesity disease state
management business. In addition, with the funds from this private placement,
the Company's shareholders' equity balance stands at approximately $4.2
million, which the Company believes results in regained compliance with all
requirements for continued listing on the Nasdaq SmallCap Market, including the
$2,500,000 shareholders' equity minimum requirement. As a result, the Company
believes its common stock will continue to be listed on the Nasdaq SmallCap
Market under an exception granted by the Nasdaq Listing Qualifications Panel.
That Panel will continue to monitor the Company's ongoing compliance with the
minimum shareholders' equity threshold until the Company has evidenced
compliance with that requirement via a publicly filed balance sheet and
demonstrated an ability to sustain compliance with the minimum shareholders'
equity requirement over the long term. To demonstrate continued compliance the
Company must file forms 10-Q for the quarters ending June 30 and September 30,
2004, evidencing the Company's continued compliance with the $2,500,000
shareholders' equity requirement.
President and Chief Executive Officer of Vista Medical, John R. Lyon, said:
"We are very pleased to have completed this private placement which provides us
with the necessary capital to continue development of our company as a
pure-play in the disease state management of morbid obesity. We have a newly
strengthened management team in place, with top level experience in the
clinical, administrative and operational aspects of managed care, hospital
systems, health care consulting and, specifically, obesity program management.
We look forward to a full-scale launch of our obesity disease state management
business model at the Annual Meeting of the American Society for Bariatric
Surgery, to be held in San Diego from June 12-16, 2004."
Vista Medical Technologies, Inc.
Our business is focused exclusively on the disease state management of morbid
obesity, through our wholly-owned subsidiary, VOW Solutions, Inc. We provide
program management, operational consulting and clinical training services to
physicians and hospitals involved in the medical and surgical treatment of
morbidly obese patients. We also provide specialized vitamins to patients who
have undergone obesity surgery. Our corporate website is
http://www.vistamt.com/; our morbid obesity disease state management website is
http://www.vowsolutionsinc.com/; information on our nutritional supplements for
post-surgical gastric bypass patients may be found on
http://www.vistavitamins.com/. Vista Medical Technologies is traded on the
Nasdaq SmallCap Market under the stock symbol VMTIC.
Forward Looking Statements
This news release may contain forward-looking statements concerning the
business and products of Vista Medical. Actual results may differ materially
depending on a number of risk factors, including, but not limited to the
following: the Company's efforts to attain and maintain the continued listing
requirement for Shareholders' Equity on the Nasdaq stock exchange; the success
of the Company's appeal to the Nasdaq Listing Qualifications Panel; the
Company's ability to raise additional capital to fund our operations and
execute our business plan; the Company's ability to penetrate the market for
obesity surgery management services; customer acceptance of our products and
services. Other risks inherent in our business are described in our Securities
and Exchange Commission filings, including our Annual Report on Form 10-K for
the year ended December 31, 2003 and our most recent quarterly report on form
10-Q. We undertake no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date of this release.
For further information please contact: John R. Lyon, President of Vista
Medical Technologies, Inc., +1-760-603-9120, ; or Investors and Media, Tony
Rossi of Financial Relations Board, +1-310-407-6563, , for Vista Medical
Technologies, Inc.
DATASOURCE: Vista Medical Technologies, Inc.
CONTACT: John R. Lyon, President of Vista Medical Technologies, Inc.,
+1-760-603-9120, ; or Investors and Media, Tony Rossi of
Financial Relations Board, +1-310-407-6563,
, for Vista Medical Technologies, Inc.
Web site: http://www.vowsolutionsinc.com/
Web site: http://www.vistavitamins.com/
Web site: http://www.vistamt.com/