A Medical Device Daily
CABG Medical (Minneapolis) reported on Friday that its shareholders have voted “overwhelming” approval of the company's plan of liquidation and dissolution at a special meeting. It said that more than 98% of the shares represented at the meeting in person or by proxy were voted in favor of the plan, representing more than 66% of the outstanding shares of CABG Medical.
With the approval, the company's common stock on Friday ceased trading on the Nasdaq.
The company is closing down as a result of clinical trial problems with its main product, the Holly graft system, a drug-eluting graft designed to facilitate coronary artery bypass procedures (Medical Device Daily, Feb. 10, 2006).
As previously reported (MDD, April 25, 2006), the company anticipates that an initial distribution of $1.47 per share will be made during the month of May 2006. After the company has completed the shut-down procedures, a second distribution of remaining funds, if any, will be distributed to shareholders and could range from $0.00 to $0.04.
The company also reported that Jay Graf, Archie Smith, Robert Munzenrider and John Babitt have resigned from the company's board. Additionally, Babitt has resigned as an officer. Manny Villafana, company CEO and chairman, will continue as a director of the company until the final cash distribution and formal dissolution is completed.