Cardo Medical Inc. (OTC:CDOM) laid off half of its 30 employees.
The Beverly Hills, Calif.-based orthopedic implant developer said it let go staff from varying functions and that CEO Dr. Andrew Brooks and COO Michael Kvitnitsky agreed to forego their salaries “for the foreseeable future.”
Cardo Medical made the cuts to reduce operating costs and preserve cash and said it will seek alternative sources of capital or some other type of restructuring. The company had been looking to raise money through a private placement, but was not successful, according to a press release.
The news comes less than a year after the company raised approximately $6.2 million in a private placement of equity to support working capital, general expenses and research and development, including the integration of its October 2009 acquisition of Stratford, Conn.-based spinal implant maker Vertebron Inc. and the release of its total knee system, according to the company.
“At this time, we continue to seek alternative sources of capital, including the selling of some or all of the company’s assets, as well as looking to enter into strategic alliances. In the event we are unable to raise additional funds, we may have to terminate additional employees, further scale back or cease operations and seek other strategic or liquidity alternatives,” Brooks said in prepared remarks.