AMEDICA ANNOUNCES CLOSING OF THE SALE OF ITS SPINE BUSINESS TO CTL MEDICAL
03 Octubre 2018 - 8:00AM
Amedica Corporation (NASDAQ: AMDA) today announced that it has
completed the previously-announced sale of its spine business to
CTL Medical, a Dallas, TX-based privately held medical device
manufacturer, on October 1, 2018, all as more fully described
below.
As previously announced, Amedica and CTL Medical
entered in an asset purchase agreement, dated September 5, 2018,
whereby CTL Medical agreed to acquire all of Amedica’s commercial
spine business for total consideration of up to $10 million. As a
result of the closing, CTL Medical is now the exclusive owner of
Amedica’s portfolio of metal and silicon nitride spine products,
which are presently sold under the brand names of Taurus,
Preference, and Valeo, with access to future silicon nitride spine
technologies. Manufacturing, R&D, and all intellectual property
related to the core biomaterial technology of silicon nitride
remains with Amedica in Salt Lake City. Amedica will serve as CTL’s
exclusive OEM provider of silicon nitride products.
“We are pleased to have closed this transaction
so quickly after the September announcement. Amedica is now free of
the considerable costs and complexity attendant to retail spine
sales, allowing the company to focus on the core biomaterials and
OEM business instead. We will fully support CTL spine sales in
terms of clinical and basic science, surgeon education, and any
other necessary sales support. Most importantly, as a debt-free
company, Amedica can now focus on revenue opportunities outside of
spine where our R&D program is particularly strong, such as in
the dental and arthroplasty markets,” said Dr. Sonny Bal, Chairman
of the Board at Amedica Corporation. “In our opinion, this is the
leanest, most efficient, and overall best position that Amedica has
ever been in as a company, from a cash position or otherwise, with
multiple strategic options going forward,” added Dr. Bal.
Daniel Chon, President and CEO of CTL Medical
noted, “The depth of science behind silicon nitride research
continues to impress us. We, at CTL Medical, the only company to
possess such highly differentiated biomaterial in spine, are
extremely bullish on the outlook and opportunities in our industry.
The closing of the acquisition now gives us the green light to
unleash the talents of our engineers to drive innovation by
applying the attributes of silicon nitride across our entire
product portfolio. The sheer amount of energy, interest, and
excitement that this acquisition has created is already noticed
worldwide and was clearly visible during the North American Spine
Society (NASS), hosted in Los Angeles last week. The responses from
our global partners, surgeons and distributors were extremely
positive and equally encouraging. We believe that as our two
organizations come together, each with distinct strengths, as one
pulls from the front and the other pushes from the back, a new era,
movement, and momentum in our industry will be seen and felt.”
The description of the asset purchase agreement
and the transaction set forth above is qualified in its entirety by
reference to the full text of the agreement, which was included as
part of the Company’s Form 8-K filed with the Securities and
Exchange Commission on September 6, 2018.
About AmedicaAmedica is an
innovative biomaterials and OEM company that develops and
commercializes silicon nitride for various biomedical applications
including orthopedic, dental and arthroplasty.
About CTL MedicalCTL Medical is
a forward thinking medical device design, development and
manufacturing company that produces a full line of cervical,
thoracic, and lumbar products (hence “CTL”) at its manufacturing
headquarters in Dallas, Texas.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 (“PSLRA”). Such forward-looking statements
include but are not limited to statements about the benefits of the
transaction, including future accretive value to CTL and Amedica’s
future financial results, operating plans, objectives, expectations
and intentions, and other statements that are not historical facts.
These forward-looking statements are subject to risks and
uncertainties that may cause actual results or events to differ
materially from those projected, including but not limited to the
risks that the benefits from the transaction may not be fully
realized or may take longer to realize than expected, including as
a result of changes in general economic and market conditions,
interest and exchange rates, monetary policy, laws and regulations
and their enforcement, and the degree of competition in the
geographic and business areas in which Amedica and CTL operate; the
ability of CTL to promptly and effectively integrate Amedica’s
commercial spine business; the reaction to the transaction of the
companies’ customers, employees, and counterparties; and the
diversion of management time on transaction-related issues. Readers
are cautioned not to place undue reliance on the forward-looking
statements, which speak only as of the date on which they are made
and reflect management’s current estimates, projections,
expectations and beliefs. Amedica undertakes no obligation to
publicly revise or update the forward-looking statements to reflect
events or circumstances that arise after the date of this
report.
Contacts:
Amedica IR
801-839-3502
IR@amedica.com
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