Critical Step Forward in Reorganization
ANDOVER, Mass.--(BUSINESS WIRE)--April 10, 2008--Diomed Holdings,
Inc., a leading developer and marketer of minimally invasive medical
technologies, including its patented EVLT(R) laser treatment for
varicose veins, announced that it has entered into an asset purchase
agreement with AngioDynamics, Inc. for the sale of Diomed's U.S.
operations for a cash purchase price of $8 million. The assets subject
to the Agreement exclude the proceeds of Diomed's settlement of its
'777 patent litigation with AngioDynamics, under which AngioDynamics
agreed to pay $7 million, and the proceeds of Diomed's anticipated
$3.6 million settlement with Vascular Solutions, Inc, now pending
bankruptcy court approval, as well as certain patents.
On March 14, 2008 Diomed Holdings and its wholly-owned subsidiary,
Diomed, Inc. filed a voluntary petition under Chapter 11 of the United
States Bankruptcy Code in the United States Bankruptcy Court for the
District of Massachusetts, Western Division. Since that time, Diomed
has been operating as a debtor-in-possession while pursuing the sale
of its U.S. operating assets. Diomed expects to complete the asset
sale to AngioDynamics within approximately 60 to 90 days and to sell
its remaining assets in due course, subject to the approval of the
bankruptcy court.
AngioDynamics has also agreed to pay $3 million in cash for
certain of the assets of Diomed Ltd, the UK subsidiary of Diomed Inc,
which filed for insolvency Administration under the laws of the United
Kingdom contemporaneously with Diomed's bankruptcy filing in the
United States. The closing of AngioDynamics' agreement with Diomed
Holdings is conditioned upon AngioDynamics' acquisition of Diomed
Ltd's assets and is subject to, among other conditions, court approval
and an auction process administered by the courts, under which other
interested parties may present competing offers.
The asset purchase agreement contemplates that Diomed will use its
existing cash, receivables and ongoing revenues to fund its operations
while it operates under Chapter 11, and, if necessary, may include up
to $1.3 million in debtor-in-possession financing from AngioDynamics.
The contemplated debtor-in-possession financing will also be subject
to bankruptcy court approval.
"We believe that AngioDynamics' acquisition of Diomed's business
provides our loyal physician partners the best opportunity for a
continuation of superior customer service, an expanded flow of new and
innovative technologies, and continuity of laser and disposable
product supply," stated James A. Wylie, Jr., Diomed's Chief Executive
Officer. "Additionally, Diomed's EndoVenous Laser business is a
terrific fit with AngioDynamics' venous product line - a win-win for
patients and physicians alike."
About Diomed
Diomed develops and commercializes minimal and micro-invasive
medical procedures that use its proprietary laser technologies and
disposable products. Diomed's EVLT(R) laser vein ablation procedure is
used in varicose vein treatments. Diomed also provides photodynamic
therapy (PDT) for use in cancer treatments, and dental and general
surgical applications. The EVLT(R) procedure and the Company's related
products were cleared by the United States FDA in January of 2002.
Along with lasers and single-use procedure kits for its EVLT(R) laser
vein treatment, the Company provides its customers with state of the
art physician training and practice development support. Additional
information is available on the Company's website: www.evlt.com.
EVLT(R) is a registered trademark of Diomed Inc., Andover, MA.
Safe Harbor
Safe Harbor statements under the Private Securities Litigation
Reform Act of 1995: Statements in this news release looking forward in
time involve risks and uncertainties, including the risks associated
with trends in the products markets, reliance on third party
distributors in various countries outside the United States,
reoccurring orders under OEM contracts, market acceptance risks,
technical development risks and other risk factors. These statements
relate to our future plans, objectives, expectations and intentions.
These statements may be identified by the use of words such as "may,"
"will," "should," "potential," "expects," "anticipates," "intends,"
"plans," "believes" and similar expressions. These statements are
based on our current beliefs, expectations and assumptions and are
subject to a number of risks and uncertainties.
Moreover, our bankruptcy filing in the United States and the
concurrent administration filing of our manufacturing subsidiary in
the United Kingdom raise significant concern as to the reliability
going forward of our previous and current forward-looking statements.
The bankruptcy process will require court approval of, among other
things, the contemplated acquisition of our operating assets by
AngioDynamics and debtor-in-possession financing. Further, given
recent developments, our actual results are likely to differ
materially from those discussed in our previous financial statements.
Diomed disclaims any obligation or duty to update or correct any of
its forward-looking statements.
CONTACT: Diomed Holdings, Inc.
Christopher J. Geberth, 877-434-6633 or 978-824-1816
Vice President Finance
investor-relations@diomedinc.com
SOURCE: Diomed Holdings, Inc.
