THE WOODLANDS, Texas--(BW HealthWire)--May 7, 1998--American BioMed Inc. (OTC Bulletin Board: ABMI), Thursday announced that the company has signed an agreement with an institutional investor that allows for American Biomed Inc. to receive up to five million dollars in an equity line of credit.
According to American BioMed Inc.'s President and Chief Executive Officer Steven B. Rash, the company received $600,000 immediately upon the signing of the contract and has the ability to draw down additional funds against the remaining $5 million equity credit line at 30-day intervals if needed, over a two-year period, subject to meeting certain conditions prior to request for funding. The equity will be in the form of convertible preferred stock at a stated discount from the market price calculated at the time of conversion and carries an 8% dividend payable in cash or stock at the company's option.
Rash stated: "This transaction marks an important event in the company's history, in that we can now focus on taking our technology onto the commercialization phase.
"The company intends to use the funding in four principal areas. To actively market our existing 100%-silicon balloon catheter line of which we have 10 FDA approved products; secondly to accelerate the development of the company's guideware micro-filter technology; thirdly to expand the OmniCath(R) clinical trials from the on-going peripheral trials into the AV Fistula trials, and lastly, to continue discussions with strategic partners that can assist in commercially advancing our technologies."
American BioMed utilizes state-of-the-art technology to develop, manufacture and market minimally invasive medical devices for the treatment of cardiovascular disease. The company's products include 100%-silicone-based catheters, through its Cathlab subsidiary; the Evert-O-Cath(TM), a toposcopic catheter for site-specific drug delivery and fluid removal; the OmniCath, an atherectomy catheter designed to remove athersclerotic plaque from obstructed blood vessels throughout the body; and the OmniFilter, which is used to prevent blood clots from reaching various organs of the body. The company has over 25 patents and 11 FDA approvals covering its product portfolio, and addresses an annual worldwide market estimated to be an over $10 billion industry.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: The statements that are not historical facts contained in the release are forward-looking statements that involve risks and uncertainties including, but not limited to, the results of research and development efforts, the results of preclinical and clinical testing, the effect of regulation by the FDA and other agencies, the impact of competitive products, product development, commercialization and technological difficulties, the results of financing efforts, the effect of the company's accounting policies, and other risks detailed in the company's Securities and Exchange Commission filings.
CONTACT:
American BioMed Inc.
Steven B. Rash, 281/367-3895
or
Coffin Communications
Matt Lepo, (Investor Relations)
818/789-0100
or
Coffin/Mottola Communications
Christi Mottola, (Press Relations)
714/851-1109
KEYWORD: TEXAS
BW1091 MAY 07,1998
Not bad for a microcap company! |
