Pyng Medical said it entered into a debt settlement in which it sold 2.8 million common shares to MDR Specialty Distribution for 5¢ per share.
The deal was made to settle Pyng Medical’s obligations under a promissory note dated August 26, 2015, the company said.
The purchase will pay off outstanding debts totaling $105,801 (CDN$138,258.36), Vancouver-based Pyng Medical said.
Newport News, Va.-based MDR Specialty Distribution distributes medical devices to hospitals, integrated healthcare systems, alternate care locations, surgery centers, GPOs, home healthcare providers and private consumers, the company said.
MDR developed the Triple Trak pedigree tracking system which the company said exceeds FDA and PDMA requirements, providing full tracking from the original manufacturer through distribution, the company said.
The purchase will put approximately 9.7% of Pyng’s shares into MDR’s hands, according to the companies.