CardioTech Announces Agreement to Sell Gish Biomedical to Medos Medizintechnik AG for a Purchase Price of $7.5 Million
Net Cash Proceeds to be Used for CardioTech’s Growth Initiatives
WILMINGTON, Mass., July 5 /PRNewswire-FirstCall/ — CardioTech International, Inc. , a developer and manufacturer of advanced materials and medical devices for the treatment of cardiovascular and other diseases, announced today that it has signed an agreement to sell its Gish Biomedical, Inc. subsidiary in a stock transaction to Medos Medizintechnik AG (”Medos”) for a purchase price of approximately $7.5 million. Medos Medizintechnik AG, is a developer and manufacturer of medical devices for cardiac surgery, extracorporeal membrane oxygenation (ECMO) and Ventricle Assist Devices (VAD). Of the purchase price, $1.0 million will be held in a one-year cash escrow to fund CardioTech’s post-closing indemnification obligations to Medos, if any. After estimated transaction costs of $500,000 and the escrow funding, CardioTech expects to realize approximately $6.0 million in cash from the sale of Gish. The terms of the agreement provide that CardioTech retains all cash on Gish’s balance sheet. The sale of Gish is expected to close on or about July 9, 2007.