CryoLife Increases Stake in Medafor, Inc. to Approximately 11 Percent
February 02 2010 - 3:24PM
PR Newswire (US)
ATLANTA, Feb. 2 /PRNewswire-FirstCall/ -- CryoLife, Inc.
(NYSE:CRY), an implantable biological medical device and
cardiovascular tissue processing company, announced today that it
has purchased approximately 740,000 additional shares of Medafor's
common stock from Medafor shareholders for $2.00 per share. Based
on the most recent information available to CryoLife, the company
now owns approximately 11 percent of Medafor and continues to be
Medafor's largest shareholder. CryoLife has proposed acquiring the
remaining outstanding common stock of Medafor for $2.00 per share
in a combination of cash and CryoLife stock, subject to completion
of reasonable due diligence. With its purchase of these additional
shares of Medafor common stock, CryoLife now has the right to call
a special shareholders meeting pursuant to Medafor's bylaws.
CryoLife remains committed to entering into friendly negotiations
with Medafor's board and management; however, in the event that
Medafor's board continues to delay, a special shareholders meeting
would afford CryoLife the opportunity to seek to replace the
Medafor board in order to maximize value for all Medafor
shareholders. CryoLife received a letter from Medafor's board on
January 22, 2010 that stated that Medafor's board was considering
its options. CryoLife has not heard from Medafor's board since that
communication. "We continue to believe that CryoLife has the
resources and financial strength to help maximize the potential of
Medafor's hemostatic technology and related products for the
benefit of shareholders and patients," said Steven G. Anderson,
CryoLife's chairman, president and chief executive officer. "We
have provided a full and fair proposal to Medafor to acquire the
company and have asked the Medafor board to engage in negotiations
with us in order to realize the greatest value for its
shareholders. Our objective is still to enter into a friendly
negotiation with Medafor's management and board and we hope to hear
from them soon. However, in the event that Medafor's board
continues to drag its feet, we will evaluate all of our options
including the right to call a special shareholders meeting that our
increased stake affords us." Medafor shareholders can find
additional information about CryoLife and its proposal to acquire
Medafor at http://www.cryolife.com/medaforoffer. ADDITIONAL
IMPORTANT INFORMATION This announcement is provided for
informational purposes only and is not an offer to purchase nor a
solicitation of an offer to sell shares of Medafor or CryoLife.
Subject to future developments, CryoLife may file a registration
statement and/or tender offer documents and/or proxy statement with
the SEC in connection with the proposed combination. Shareholders
should read those filings, and any other filings made by CryoLife
with the SEC in connection with the combination, as they will
contain important information. Those documents, if and when filed,
as well as CryoLife's other public filings with the SEC, may be
obtained without charge at the SEC's website at http://www.sec.gov/
and at CryoLife's website at http://www.cryolife.com/. About
CryoLife, Inc. Founded in 1984, CryoLife, Inc. is a leader in the
processing and distribution of implantable living human tissues for
use in cardiac and vascular surgeries throughout the U.S. and
Canada. The Company's CryoValve® SG pulmonary heart valve,
processed using CryoLife's proprietary SynerGraft® technology, has
FDA 510(k) clearance for the replacement of diseased, damaged,
malformed, or malfunctioning native or prosthetic pulmonary valves.
The Company's CryoPatch® SG pulmonary cardiac patch has FDA 510(k)
clearance for the repair or reconstruction of the right ventricular
outflow tract (RVOT), which is a surgery commonly performed in
children with congenital heart defects, such as Tetralogy of
Fallot, Truncus Arteriosus, and Pulmonary Atresia. CryoPatch SG is
distributed in three anatomic configurations: pulmonary
hemi-artery, pulmonary trunk, and pulmonary branch. The Company's
BioGlue® Surgical Adhesive is FDA approved as an adjunct to sutures
and staples for use in adult patients in open surgical repair of
large vessels. BioGlue is also CE marked in the European Community
and approved in Canada and Australia for use in soft tissue repair.
The Company's BioFoam® Surgical Matrix is CE marked in the European
Community for use as an adjunct in the sealing of abdominal
parenchymal tissues (liver and spleen) when cessation of bleeding
by ligature or other conventional methods is ineffective or
impractical. BIOGLUE Aesthetic(TM) Medical Adhesive is CE marked in
the European Community for periosteal fixation following endoscopic
browplasty (brow lift) in reconstructive plastic surgery and is
distributed by a third party for this indication. CryoLife
distributes HemoStase®, a hemostatic agent, in much of the U.S. for
use in cardiac and vascular surgery and in many international
markets for cardiac, vascular, and general surgery, subject to
certain exclusions. For additional information about the company,
visit CryoLife's Web site: http://www.cryolife.com/. Media
Contacts: D. Ashley Lee Executive Vice President, Chief Financial
Officer and Chief Operating Officer Phone: 770-419-3355 Nina Devlin
Edelman Phone: 212-704-8145 DATASOURCE: CryoLife, Inc. CONTACT: D.
Ashley Lee, Executive Vice President, Chief Financial Officer,
Chief Operating Officer, +1-770-419-3355; or Nina Devlin of
Edelman, +1-212-704-8145 Web Site: http://www.cryolife.com/
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