CABG Medical Announces 2005 Results
February 27 2006 - 3:01PM
PR Newswire (US)
MINNEAPOLIS, Feb. 27 /PRNewswire-FirstCall/ -- CABG Medical, Inc.
(NASDAQ:CABG) today reported results for the year ended 2005. Net
loss for the year 2005 was $9.7 million, or $0.52, per share
compared to a net loss of $3.5 million, or $0.34 per share, for the
year ended 2004. The 2005 net loss included research and
development expense of $8,822,000 of which $4,363,000 was related
to the Company's March 22, 2005 paclitaxel license agreement with
Angiotech Pharmaceuticals, Inc. The license agreement expense
included a non-cash charge of $4,335,000 related to the issuance of
equity securities to Angiotech. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050114/CGF013LOGO ) As
previously announced, the Company has ceased research and
development activities associated with the Holly Graft System,
terminated seven of its eleven full-time employees and has
initiated the process for the formal liquidation and dissolution of
the Company. In parallel with the formal dissolution process the
Company continues to evaluate strategic alternatives through its
engagement with Goldsmith, Agio, Helms, a Minneapolis investment
bank. To date there have been no discussions with a potential
acquirer that management believes could reasonably lead to an
acquisition offer; and there is no assurance that an agreement
resulting in an acceptable transaction will be entered into prior
to shareholder approval of a dissolution. The Company anticipates
that in the event of a liquidation and dissolution, it will be able
to distribute a total of approximately $1.20 per share to $1.47 per
share in cash to shareholders. Any such liquidation and dissolution
would be subject to shareholder approval prior to the distribution
of funds to shareholders. It is anticipated that a special meeting
of shareholders to approve a dissolution of the Company will be
held on or about April 27, 2006. The $1.47 per share amount
represents the Board of Directors' estimate of the amount that
could be distributed to the shareholders if: (i) the dissolution is
approved by shareholders on or about April 27, 2006, (ii) there are
no significant legal actions brought against us prior to effecting
the dissolution and (iii) there are no other significant contingent
obligations arising prior to the effective date of the dissolution.
The $1.20 per share amount represents the Board of Directors' best
estimate of the distributions the shareholders could reasonably
expect to receive in the event the dissolution process does not
proceed as currently anticipated. Currently, unforeseen patient or
other legal claims, contingent obligations, larger than anticipated
impairments and discounts on the sale of illiquid assets and larger
than expected operational expenses may reduce the amount of cash
available for distribution to a greater extent than we anticipate,
and depending on their magnitude, could reduce the actual cash
distribution to significantly lower than $1.20 per share. CABG
Medical, Inc. Statements of Operations (unaudited) Three Months
Ended December 31, Year Ended 2004 2005 2004 2005 (In thousands,
except share and per share data) Revenue $21 $70 $21 $104 Expenses:
Research and development 1,007 1,312 2,647 8,822 Marketing, general
and administrative 400 605 996 2,105 Total 1,386 1,847 3,622 10,823
Interest income 46 321 71 1,099 Net loss $(1,340) $(1,526) $(3,551)
$(9,724) Basic and diluted net loss per share $(0.11) $(0.08)
$(0.34) $(0.52) Weighted average shares outstanding - basic and
diluted 11,773,524 19,493,785 10,298,639 18,624,697 CABG Medical,
Inc. Balance Sheets (unaudited) December 31, December 31, 2004 2005
(In thousands) Assets Current assets: Cash and short term
investments $28,936 $32,648 Other current assets 291 615 Total
current assets 29,227 33,263 Property and equipment, net 199 70
Total assets $29,426 $33,333 Liabilities & Stockholders' Equity
Current liabilities: Accounts payable $841 $647 Accrued liabilities
19 48 Total current liabilities 860 695 Total stockholders' equity
28,566 32,638 Total liabilities and stockholders' equity $29,426
$33,333 First Call Analyst: FCMN Contact:
mike.kramer@cabgmedical.com
http://www.newscom.com/cgi-bin/prnh/20050114/CGF013LOGO
http://photoarchive.ap.org/ DATASOURCE: CABG Medical, Inc. CONTACT:
Manny Villafana, Chairman & CEO, or, John L. Babitt, President
& CFO, both of CABG Medical, Inc., PHONE, +1-763-258-8005, FAX,
+1-763-258-8008 Web site: http://www.cabgmedical.com/
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