FOOTHILL RANCH, Calif., Dec. 1 /PRNewswire-FirstCall/ -- Cardiogenesis Corporation , the market leader in surgical products and accessories used in angina-relieving Transmyocardial Revascularization (TMR) and Percutaneous Myocardial Channeling (PMC) procedures, announced today that it made a cash principal and interest payment of $125,000 on the convertible note originally issued to Laurus Master Fund, Ltd. in October 2004. This is the first cash payment made under the Company’s repayment plan for the convertible note.
Chairman and CEO Michael J. Quinn commented on the repayment plan, “We are very pleased with the positive operating results that we achieved in the third quarter. We are focused on strengthening the company financially by reducing our expense base and limiting spending to necessary expenditures. Our strategic plan includes an effort to strengthen the Company’s stock price by reducing the overhang resulting from the issuance of stock in repayment of the convertible note as well as the prospects for future issuances in repayment of such note. While we cannot assure that additional issuances will not occur, we are committed to maximizing cash funds available for repayment of the note. We believe that repayment of the note in cash as opposed to stock is necessary in order to reduce any selling pressure on our stock resulting from conversions of note payments into common stock.”
To the extent the Company’s operations continue to generate sufficient cash to do so and to the extent permitted by the terms of the convertible note, it is the Company’s intention to make future monthly principal and interest payments in cash as well as making additional payments over and above the required monthly amounts. If the Company’s stock price meets certain conversion criteria, Laurus Master Fund may require conversion of the monthly principal payment into common stock regardless of the Company’s desire to make payment in cash.
About Cardiogenesis Corporation
Cardiogenesis is a medical device Company specializing in the treatment of cardiovascular disease and is a leader in devices that stimulate cardiac angiogenesis. The Company’s market leading Holmium: YAG laser system and disposable fiber-optic accessories are used to perform a FDA-cleared surgical procedure known as Transmyocardial Revascularization (TMR) to treat patients suffering from angina. Surgical products and accessories for the Cardiogenesis TMR procedure, which are marketed in the U.S. and around the world, have been shown to reduce angina and improve the quality of life in patients with coronary artery disease. Surgical products and accessories for the Company’s minimally invasive Percutaneous Myocardial Channeling (PMC) procedure are currently being marketed in Europe and other international markets.
For more information on the Company and its products, please visit the Cardiogenesis company web site at www.cardiogenesis.com or the patient and physician website at www.heartofnewlife.com. heartofnewlife.com is a resource for patients and physicians which provides medical information on TMR.
With the exception of historical information, the statements set forth above include forward-looking statements. Any forward-looking statements in this news release related to the Company’s sales, profitability, the adoption of its technology and products and FDA clearances are based on current expectations and beliefs and are subject to numerous risks and uncertainties, many of which are outside the Company’s control, that could cause actual results to differ materially. Factors that could affect the accuracy of these forward-looking statements include, but are not limited to: any inability by the Company to sustain profitable operations or obtain additional financing on favorable terms if and when needed; any failure to obtain required regulatory approvals; failure of the medical community to expand its acceptance of TMR or PMC procedures; possible adverse governmental rulings or regulations, including any FDA regulations or rulings; the Company’s ability to comply with international and domestic regulatory requirements; possible adverse Medicare or other third-party reimbursement policies or adverse changes in those policies; any inability by the Company to ship product on a timely basis; the Company’s ability to manage its growth; adverse economic developments that could adversely affect the market for our products or our ability to raise needed financing; actions by our competitors; and the Company’s ability to protect its intellectual property. Other factors that could cause Cardiogenesis’ actual results to differ materially are discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2004, the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005, and the Company’s other recent SEC filings. The Company disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
Cardiogenesis Corporation
CONTACT: Michael J. Quinn, Chairman and CEO, +1-714-649-5050, or ChristineG. Ocampo, Sr VP, CFO, +1-714-649-5066, both of Cardiogenesis Corporation
