Salt Lake City-based Perseon said MedLink put up an $850,000 bid deposit, which Perseon would have to return (plus 5% on any of it used to fund operations) if MedLink doesn’t win out at the bankruptcy auction. Perseon would also owe a $217,500 break-up fee if MedLink’s stalking horse bid fails.
Perseon, formerly known as BSD Medical, said it spiced the MedLink deal with a $200,000 licensing agreement giving MedLink an exclusive license to market its MicroThermX microwave ablation device device in China, Hong Kong, Taiwan and Korea. The licensing deal calls for MedLink to pay a 5% royalty on annual net profits to a maximum of $3 million.
The U.S. Bankruptcy Court for Utah must still approve the bankruptcy arrangements, Perseon said. In bids to slash its cash burn, CEO Clint Carnell is working without pay and Perseon laid off a “substantial” number of employees after the failure last year of an $11 million merger with Galil Medical.