PLC Systems Inc. (OTC:PLCSF) entered into a deal to sell off its transmyocardial revascularization assetts to Novadaq Technologies Inc. (TSX:NDQ) for $1 million in cash.
The transaction could be worth up to $1.7 million because it includes the assumption of PLC’s service contract obligations valued at approximately $700,000, according to the struggling Franklin, Mass.-based medical device maker.
Novadaq, based in Mississauga, Ontario with offices in Bonita Springs, Fla., has had exclusive distribution rights to PLC’s TMR-related CO2 Heart Laser Systems since 2007, according to PLC. TMR is a cardiac surgical technique used on patients not treatable by balloon dilatation or coronary artery bypass graft. The procedure employs a CO2 laser to create channels through the heart muscle in order to encourage blood vessels to grow in a process called angiogenesis.
The deal is still subject to PLC shareholder’s approval, according to the company, but the cash infusion may be welcomed by the investors. At the close of 2009, PLC’s accountants, Caturano & Co., were worried the company wasn’t bringing in enough cash to stay in business through 2010, and slapped the company with a so-called “going concern” opinion on its audit. The accountants had “substantial doubt about [PLC’s] ability to continue as a going concern for the next 12 months,” according to an official statement by company.
"The critical cash injection that this sale will provide us should enable us to continue to work on raising the additional funding we need to continue with our RenalGuard business,” said PLC CEO Mark Tauscher in a prepared statement the company released today.
The company’s CE Mark approved RenalGuard product is designed to replace fluids in the bladder during imaging procedures in radiology and cardiology, and thus remove toxins linked to acute kidney failure.
