Financings In Brief
This article was originally published in The Gray Sheet
Executive Summary
Baxter/Cerus: Baxter Capital Corporation aims to recall a $50 mil. loan to Cerus through legal proceedings, alleging that the firm's recent termination of Phase III clinical trials for the Intercept pathogen inactivation system for red blood cells constitutes default under the terms of the credit facility (1"The Gray Sheet" Sept. 8, 2003, p. 14). Cerus disagrees, asserting that interest and principle on the loan, which commenced in January, are not due until 2008. Cerus also notes it is cutting its current workforce by about 40 people, or roughly 25%, and R&D expenses for 2003 by approximately $5-$10 mil. The move will produce $20-$25 mil. in projected 2004 savings. The firms' relationship in developing Intercept for platelets is unaffected by the financing issue, Cerus says...
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Financings In Brief
WorldHeart relisting: Stock (WHTOF) resumes trading on Nasdaq at $9.50 following seven-to-one consolidation approved by shareholders Nov. 25, 16 months after being delisted. On Sept. 23, the company issued $63.5 mil. in common stock and converted $58 mil. of preferred shares into roughly 5 mil. common shares. Shareholders also agreed to convert the remaining $20 mil. in preferred shares and $3.5 mil. in accrued dividends. Following the restructuring and consolidation, the Ottawa firm has no preferred shares outstanding, about 15 mil. common shares and no debt. WorldHeart recently announced a new strategy for the U.S. marketing of its Novacor left-ventricular assist device, taking advantage of Medicare reimbursement for investigational LVADs (1"The Gray Sheet" Nov. 10, 2003, p. 39)...