A Medical Device Daily
Cyberonics (Houston) reported that it has repurchased, in privately-negotiated transactions, an aggregate of about $27.6 million face value of its 3.0% convertible notes due 2012, for aggregate consideration of about $25 million in cash, excluding accrued interest.
As a result of these repurchases, about $97.4 million of the convertible notes remain outstanding. As of July 25, Cyberonics said it had about $101 million in cash, without giving effect to the $25 million used by Cyberonics to repurchase the convertible notes.
"This repurchase enables us to improve our balance sheet by reducing our debt position while maintaining an adequate level of cash," said Dan Moore, president/CEO of Cyberonics. "Because the repurchase was done at a discount to face value, we will record a one-time gain of approximately $2.6 million on a pre-tax basis during our second quarter ending October 24, 2008."
Cyberonics is the developer of the Vagus Nerve Stimulation (VNS) Therapy System, which is FDA-approved for the treatments of epilepsy and treatment-resistant depression. The VNS system uses a surgically implanted medical device that delivers electrical pulsed signals to the vagus nerve.
Aduromed Industries (Bethel, Connecticut) reported that it has raised an additional $1 million of new equity capital pursuant to its previously reported corporate restructuring. This brings the total amount of new equity capital raised pursuant to the restructuring to $4.8 million after placement fees, the company said (Medical Device Daily, Aug. 7, 2008).
Through its wholly-owned subsidiary, Aduromed Corp., the company is a provider of technology and services for the onsite treatment and disposal of regulated medical waste.
Aduromed's flagship MedClean Series systems are fully integrated, turnkey technology solutions that are designed to enable hospitals and other healthcare providers to convert bio-hazardous regulated medical waste into sterile, unrecognizable material suitable for disposal as municipal solid waste.