Shares of troubled Cambridge Heart (NSDQ:CAMH) continued to spiral as the company announced that it’s winding down its business operations.
CAMH shares have been below 1¢ apiece since February 12, and were down to 0.5¢ as of yesterday’s close.
The company has already auctioned off its assets, raising about $4 million in secured notes issued to Cambridge Heart’s creditors.
"A collateral agent for the Secured Creditors held a public auction … for the sale of all of the company’s assets, which secured approximately $4.03 million in notes issued to the Secured Creditors," according to a Cambridge Heart SEC filing. "The Secured Creditors made a credit bid of $1.5 million and, at the conclusion of the public auction, were deemed the highest bidder for the assets."
The creditors agreed to cancel Cambridge Heart’s $1.5 million outstanding debt, assigning the assets to newly formed Cambridge Cardiac Technologies. The creditors further agreed to fund some of the Cambridge Heart’s last act and to pay all debts incurred since the start of the year.
Cambridge Heart has had a tough road, posting declining sales and persistent losses in recent quarters. The company attempted a turnaround last year, restructuring its operations to reduce its cash burn, including reductions in personnel and overhead costs, and restructured managerial compensation, but couldn’t keep the ship afloat. The company determined late last year that its existing resources weren’t enough to fund operations and that it wouldn’t be able to raise enough cash to keep going.
The company developed non-invasive diagnostics for identifying patients at risk of sudden cardiac arrest, including its Microvolt T-Wave Alternans system and Analytic Spectral Method.
