BOSTON, MA--(Marketwire - 04/19/11) - NMT Medical, Inc. (Pinksheets:NMTI - News) (Pinksheets:NMTI - News) today announced that, despite the Company's efforts to obtain additional financing and identify potential strategic transactions, it has failed to raise additional funds or enter into such strategic transaction and, therefore, it has entered into an Assignment for the Benefit of Creditors, effective immediately, in accordance with Massachusetts law (the "Assignment"). The purpose of the Assignment is to conclude the Company's operations and provide for an orderly liquidation of its assets. The Company previously disclosed that it did not have resources to sufficiently fund its continuing business operation and additional capital was required to remain a going concern, and the Company had been seeking strategic alternatives, including financings, recapitalization, sale or disposition of one or more corporate assets, a potential merger and/or a strategic business combination, with various third parties over the course of the past year.
The Assignment is a common law business liquidation mechanism under Massachusetts law that is an alternative to a formal bankruptcy proceeding. Under the terms of the Assignment, the Company transferred all of its assets to an assignee for orderly liquidation and distribution of the proceeds to the Company's creditors. The designated assignee for the Company is Joseph F. Finn, Jr. For creditors and other affected parties of NMT Medical, Inc. all inquiries related to this action should be addressed to Joseph F. Finn, Jr. at Finn, Warnke and Gayton, 167 Worcester Street, Suite 201, Wellesley Hills, MA 02481 (781-237-8840). Following the liquidation of the Company's assets and distribution of proceeds by the assignee, the Company does not expect that there will be any proceeds for distribution to the Company's stockholders. As part of the Assignment, the Company has terminated the employment of all of its employees.
This news release contains express or implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on current expectations of management. These statements relate to, among other things, expectations concerning the transfer of all of the Company's Assets to an assignee under and Assignment for the Benefit of Creditors and matters relating to the payment of creditors. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional information regarding these and other risks that we face, see the disclosure contained in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.