With the addition of two new directors, Angeion Corp. (NSDQ:ANGN) neared the completion of a board restructuring stipulated by an agreement with major shareholder BlueLine Partners LLC.
The St. Paul, Minn.-based cardiorespiratory diagnostic equipment maker appointed Mark Sheffert, who was subsequently elected chairman, and Robert Munzenrider was elected as a sixth director and will serve as chair of the board’s audit committee.
Sheffert is CEO of banking advisory firm Manchester Companies Inc. and became an Angeion director in 1999 when the compnay acquired Medical Graphics Corp., where he was also chairman of the board. He served on Angeion’s board until 2002.
“[Sheffert] brings strong, experienced governance and financial leadership. … [Munzenrider’s] broad-based medical, manufacturing, finance and accounting background will be invaluable as we move forward,” Angeion CEO Rodney Young said in prepared remarks.
Danville, Calif.-based BlueLine Partners, which owns a 7.2 percent stake in Angeion, sought to rally other shareholders in an effort to oust Angeion’s board in early August, citing the company’s poor performance.
BlueLine Partners wanted to replace Angeion’s directors with a new board nominated by shareholders, according to a statement by the company and a filing with the federal Securities & Exchange Commission.
On Aug. 18, Angeion said it entered into an agreement with the company to amend the filing and withdraw its request that Angeion’s shareholders call a special meeting to nominate new directors. Both companies agreed to reconstitute the Angeion board with seven directors, including four current Angeion directors, one of whom is BlueLine managing director Scott Shuda. The board is still in the process of selecting a seventh director.
Since emerging from Chapter 11 bankruptcy protection in 2002, the company has struggled. Angeion has lost money for two consecutive years, dropping $1.6 million last year and $686,000 in 2008. The company fired CFO William Kullback in July.
Angeion, which manufactures and sells cardiorespiratory diagnostic products under the brand names of MedGraphics and New Leaf, posted a profit during its third quarter, as a 14 percent sales increase pushed the company into the black. The company posted net income of $126,000, or 3 cents per diluted share, on sales of $7.1 million during the three months ended July 31. That compares with a net loss of $173,000, or 4 cents per diluted share, on sales of $6.2 million during the same period last year.
Material from MedCity News was used in this report.