EDAP TMS SA Significantly Strengthens Financial Profile
March 29 2012 - 8:00AM
Provides Funds to Heighten U.S. Lithotripsy Marketing
Reduces Debt by 20%
EDAP TMS SA (Nasdaq:EDAP), a global leader in therapeutic
ultrasound, outlined today the strengthening of its financial
profile and the intended use of proceeds from its previously
announced registered direct placement of $5.625 million of ordinary
shares and warrants, which closed yesterday. The shares were sold
in the form of American Depositary Shares ("ADSs") at a price of
$2.00 per share, with warrants attached.
EDAP intends to use 40% of the net proceeds from the offering to
reduce debt by approximately 20%. The remainder of the
proceeds will be used to finance the Company's marketing efforts,
including the repositioning of its Ablatherm-HIFU for focal and
salvage therapy and the strengthening of its marketing and sales
program in the U.S. for the Sonolith i-move lithotripter
device.
"The proceeds from this offering provide EDAP with a stronger
financial footing," said Marc Oczachowski, Chief Executive Officer
of EDAP TMS. "Not only have we reduced our debt, but we intend
to use a significant portion of the proceeds to enhance our
lithotripsy opportunities by deepening our global penetration and
continuing to aggressively build our U.S. presence by significantly
taking market share."
Marc Oczachowski concluded, "With this additional financial
strength, the Company will be better able to focus and seize the
opportunity within the growing prostate cancer market, for both
focal and salvage treatments, triggered by the patient profile
evolution. This new and expanding population needs solutions that
are not available with the radical treatment standard of care but
are offered almost exclusively by Ablatherm-HIFU with its
non-invasive, repeatable and accurate treatment."
About EDAP TMS SA
EDAP TMS SA develops and markets Ablatherm(R), 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 multi-center U.S. Phase II/III clinical
trial under an Investigational Device Exemption (IDE) 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 (the Sonolith(R) range) 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, and http://www.hifu-planet.com.
Forward-Looking Statements
In addition to historical information, this press release may
contain forward-looking statements that involve risks and
uncertainties. 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: Blandine Confort
Investor Relations / Legal Affairs
EDAP TMS SA
+33 4 72 15 31 72
bconfort@edap-tms.com
Investors:
Stephanie Carrington
The Ruth Group
646-536-7017
scarrington@theruthgroup.com
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