Debtor-in-Possession Financing Secured to
Support Ongoing Operations and Chapter 11 Process
DENVER,
July 17,
2023 /PRNewswire/ -- ViewRay, Inc. (Nasdaq: VRAY)
announced today that it and certain of its subsidiaries
(collectively, "the Company") filed voluntary petitions for relief
(the "Petitions") under Chapter 11 of Title 11 the U.S. Bankruptcy
Code ("Chapter 11") in the United
States Bankruptcy Court for the District of Delaware (the "Court"). The Company further
disclosed that it intends to pursue a sale of its business under
Section 363 of the Bankruptcy Code, including a sale of all or a
portion of the Company's assets, while continuing to support its
customers during the Chapter 11 process.
To facilitate this process, in addition to having
the use of its sufficient existing cash reserves, the Company has
received a commitment of approximately $6
million in debtor-in-possession financing from MidCap
Financial Services, LLC. Following court approval, the Company
expects this financing to provide the necessary liquidity to
support operations during the Chapter 11 process.
Alongside these efforts, the Company is
strategically managing inventory to maintain MRIdian MRI-guided
radiation therapy systems at customer sites across the globe. The
Company has filed a variety of "first day" motions containing
customary relief intended to assure the Company's ability to
continue its ordinary course operations, such as continuing to
service its customers and honor its obligations to its remaining
employees, following an additional reduction in force, as the
Company begins its efforts to effectuate the sale of its
assets.
On July 15, 2023,
prior to filing the Petitions, Phillip M.
Spencer and Gail Wilensky,
Ph.D., advised the Board of Directors (the "Board") of the Company
of their resignations from the Board. Subsequently, on July 15, 2023, Scott
Drake ceased to serve as the Chief Executive Officer of the
Company, and transitioned to a continuing role as a director of the
Company.
The Company has appointed Paul Ziegler as Chief Executive Officer of the
Company, effective July 15, 2023. Mr.
Ziegler, who had been the Chief Commercial Officer of the Company,
has also been appointed to the Board as a director. The Board also
decreased the size of the Board from nine to seven directors. In
addition, the Company has appointed Sanket
Shah as Senior Vice President, General Counsel of the
Company, effective as July 15, 2023.
Mr. Shah has been at the Company since 2019, most recently acting
as Vice President, Deputy General Counsel.
"Despite the operating challenges, MRIdian
has facilitated real societal value and remains critically
important for a broad population of cancer patients, including
those who were previously considered untreatable," said Mr.
Ziegler. "We deeply appreciate our teammates, customers,
partners, and patients that we serve. We will continue to work
diligently to maximize value for the benefit of all
stakeholders."
Court filings and information about the Chapter
11 case can be found at a website maintained by the Company's
claims agent Stretto at
https://cases.stretto.com/ViewRay. Faegre Drinker Biddle &
Reath LLP is serving as legal counsel, B. Riley Securities, Inc. is
serving as investment banker, and Berkeley Research Group is
serving as financial advisor.
About ViewRay
ViewRay, Inc. (Nasdaq: VRAY) designs, manufactures, and markets the
MRIdian® MRI-Guided Radiation Therapy System. MRIdian is built
upon a proprietary high-definition MR imaging system designed from
the ground up to address the unique challenges and clinical
workflow for advanced radiation oncology. Unlike MR systems used in
diagnostic radiology, MRIdian's high-definition MR was
purpose-built to address specific challenges, including beam
distortion, skin toxicity, and other concerns that potentially may
arise when high magnetic fields interact with radiation beams.
ViewRay and MRIdian are registered trademarks of ViewRay, Inc.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Private Securities Litigation Reform
Act. Statements in this press release that are not purely
historical are forward-looking statements. Such forward-looking
statements include, among other things, ViewRay's financial
guidance for the full year 2023, anticipated future
orders, anticipated future operating and financial
performance, treatment results, therapy adoption, innovation, and
the performance of the MRIdian systems. Actual results could
differ from those projected in any forward-looking statements due
to numerous factors. Such factors include, among others, the
ability to commercialize the MRIdian Linac System, demand for
ViewRay's products, the ability to convert backlog into revenue,
the timing of delivery of ViewRay's products, the timing, length,
and severity of the COVID-19 pandemic, including its impacts across
our businesses on demand, our operations and global supply chains,
the results and other uncertainties associated with clinical
trials, the ability to raise the additional funding needed to
continue to pursue ViewRay's business and product development
plans, the inherent uncertainties associated with developing new
products or technologies, competition in the industry in which
ViewRay operates, and overall market conditions. For a further
description of the risks and uncertainties that could cause actual
results to differ from those expressed in these forward-looking
statements, as well as risks relating to ViewRay's business in
general, see ViewRay's current and future reports filed with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K for the fiscal year ended December
31, 2022 and its Quarterly Reports on Form 10-Q, as updated
periodically with the Company's other filings with the SEC. These
forward-looking statements are made as of the date of this press
release, and ViewRay assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those projected in the forward-looking
statements, except as required by law.
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SOURCE ViewRay, Inc.