NMT Medical Inc. (NSDQ:NMTI) defaulted on a $4 million revolving credit line from Silicon Valley bank, which agreed not to call in its note in exchange for $2,500 worth of the vig.
Boston, Mass.-based NMT ran afoul of a liquidity covenant in the terms of the line, which it took out in June 2009. For a $2,500 forbearance fee, the bank agreed to hold off calling in its chit until Nov. 19, according to a regulatory filing.
In June, shares of the company’s stock tanked on news that a clinical trial, examining the use of its flagship StarFlex cardiac implant for treating stroke and transient ischemic attack, failed to meet its primary endpoint of demonstrable superiority to “current best medical therapy for preventing recurrent strokes and TIAs.”
Looking to regain its footing, the company shuffled its executive deck in August, with former CEO Frank Martin and former board chairman James Mahoney stepping aside for then-COO Rick Davis. That prompted another de-listing warning from NASDAQ, because NMT then lacked the requisite number of directors for its audit committee.
NMT reversed a $3.8 million loss during the second quarter for a $2.6 million profit, but its sales dropped 16 percent. NMTI shares closed at 36 cents today, down more than 3 percent.