EDAP Reduces Convertible Debt by USD 4.6 Million
January 03 2011 - 7:30AM
EDAP TMS SA (Nasdaq:EDAP), the global leader in therapeutic
ultrasound, announced today that it entered into agreements with
certain holders of its senior debentures and warrants to redeem
part of EDAP's outstanding convertible debt and cancel some of its
outstanding warrants. Pursuant to these agreements, the Company
issued 1,441,743 ordinary shares in the form of American Depositary
Shares in exchange for 4,558 senior debentures (equivalent to USD
4,558,000) and 986,965 warrants, reducing the current outstanding
debt by USD 4.6 million to USD 10.5 million (EUR 7.9 million).
Marc Oczachowski, Chief Executive Officer of EDAP TMS,
commented, "We are particularly pleased with this very positive
move to reduce the Company's indebtedness as it enhances our
financial flexibility. The agreement with some of our bond and
warrant holders strengthens the Company's financial profile and
reduces some of our future financial obligations."
Mr. Oczachowski continued, "This significant improvement,
together with the Company's efforts to reduce and tightly control
its operational expenses, will increase the Company's ability to
finance its development programs in the future. We are taking steps
to position Ablatherm-HIFU as the optimum focal therapy treatment
option for prostate cancer and advancing our technology for other
new oncology indications."
About EDAP TMS SA
EDAP TMS SA develops and markets Ablatherm, the most advanced
and clinically proven choice for high-intensity focused ultrasound
(HIFU) treatment of localized prostate cancer. HIFU treatment is
shown to be a minimally invasive and effective treatment option
with a low occurrence of side effects. Ablatherm-HIFU is generally
recommended for patients with localized prostate cancer (stages
T1-T2) who are not candidates for surgery or who prefer an
alternative option, or for patients who failed radiotherapy
treatment. Approved in Europe as a treatment for prostate cancer,
Ablatherm-HIFU (High Intensity Focused Ultrasound) is currently
undergoing evaluation in a multicenter U.S. Phase II/III clinical
trial under an Investigational Device Exemption granted by the FDA,
the ENLIGHT U.S. clinical study. The Company also is developing
this technology for the potential treatment of certain other types
of tumors. EDAP TMS SA also produces and commercializes medical
equipment for treatment of urinary tract stones using
extra-corporeal shockwave lithotripsy (ESWL). For more information
on the Company, please visit http://www.edap-tms.com,
http://www.hifu-planet.com.
Forward-Looking Statements
In addition to historical information, this press release
contains forward-looking statements that involve risks and
uncertainties. These include statements regarding the Company's
growth and expansion plans, the conclusiveness of the results of
and success of its Ablatherm-HIFU clinical trials and expectations
regarding the IDE submission to and approval by the FDA of the
Ablatherm-HIFU device. Such statements are based on management's
current expectations and are subject to a number of uncertainties,
including the uncertainties of the regulatory process, and risks
that could cause actual results to differ materially from those
described in these forward-looking statements. Factors that may
cause such a difference include, but are not limited to, those
described in the Company's filings with the Securities and Exchange
Commission and in particular, in the sections "Cautionary Statement
on Forward-Looking Information" and "Risk Factors" in the Company's
Annual Report on Form 20-F. Ablatherm-HIFU treatment is in clinical
trials, but not FDA-approved or marketed in the United States.
CONTACT: EDAP TMS SA
Investor Relations / Legal Affairs
Blandine Confort
+33 4 72 15 31 72
bconfort@edap-tms.com
The Ruth Group
Investors:
Stephanie Carrington
646-536-7017
scarrington@theruthgroup.com
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