The $4.35 million sale, which closed August 22, was part of the Chapter 11 bankruptcy proceedings for Perseon, which makes the MicroThermX microwave ablation system for treating soft tissue tumors.
The device can be used in percutaneous or open surgical procedures, and received expanded 510(k) clearance earlier this year for laproscopic ablation procedures using image guidance.
In announcing the buyout in May, the Salt Lake City-based company said Scion Medical subsidiary MedLink put up an $850,000 bid deposit, which Perseon would have had to return (plus 5% on any of it used to fund operations) if MedLink didn’t win out at the bankruptcy auction.
But after no other bids were forthcoming by the July 21 deadline, the bankruptcy court canceled the auction and approved the sale to Medlink, Perseon said in a regulatory filing.
Perseon said in May that 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.
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.