- Submits non-binding term sheet for hyperthermia assets
- Commences monetization of real estate assets
- Expects 180-day grace period extension from NASDAQ
SALT LAKE CITY, Jan. 29, 2015 (GLOBE NEWSWIRE) -- BSD Medical Corporation (Nasdaq:BSDM) (Company or BSD), a leading provider of medical systems that utilize heat therapy to treat cancer, today provided an update on its strategic plan for the Company first outlined on January 12, 2015. As part of this plan, BSD intends to exit its hyperthermia product line this year and has submitted a non-binding term sheet for the potential sale of its assets. Terms are still being negotiated; however, the Company expects to close the transaction in spring 2015 if discussions progress as planned.
"We have received clear feedback from both Wall Street and strategic players that BSD will be a stronger and more attractive potential partner as a pure play microwave ablation company with a single, market leading product platform," said Clint Carnell, CEO of BSD Medical. "We are working to divest BSD's hyperthermia assets and obtain the highest valuation from it for shareholders as possible, all while focusing our realigned, leaner organization on the high growth, high margin microwave ablation platform exclusively."
Carnell continued, "In addition to our efforts to divest hyperthermia, we are moving swiftly, making important progress on our strategic plan, and are evaluating every available opportunity. For example, to capitalize on the robust local market for commercial real estate, we have decided to monetize the building we own in Salt Lake City by commencing a direct sale or sale-leaseback transaction. This will unlock capital we have tied up in real estate to help fund our growth initiatives."
Based on management's conversations to date with NASDAQ, BSD expects to receive an additional 180-day grace period on or around February 6, 2015 to regain compliance with the minimum bid price requirement and avoid delisting. As stated previously, the Company may be eligible to receive this additional grace period provided that it 1) meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market with the exception of the minimum bid price requirement, and 2) provides written notice of its intention to cure the minimum bid price deficiency during the second 180-day grace period by effecting a reverse stock split, if necessary.
"I am comfortable with the runway we have in front of us to deliver shareholder value. In the coming months, we intend to demonstrate progress to shareholders on our turnaround efforts, including reporting on microwave ablation case numbers and beginning to display revenue traction from our sales efforts," concluded Carnell.
About BSD Medical Corporation
BSD Medical Corporation develops, manufactures, markets and services systems to treat cancer and benign diseases using heat therapy, which is delivered using focused radiofrequency (RF) and microwave energy. BSD's product lines include both hyperthermia and ablation treatment systems. BSD's MicroThermX® microwave ablation system has been developed as a stand-alone therapy to employ precision-guided microwave energy to ablate (destroy) soft tissue. The Company has developed extensive intellectual property, multiple products in the market and established distribution in the United States, Europe and Asia. Certain of the Company's products have received regulatory approvals and clearances in the United States, Europe and China.
For further information visit BSD Medical's website at www.BSDMedical.com.
Statements contained in this press release that are not historical facts, including statements relating to our intent to divest our hyperthermia business in Spring 2015, focus on microwave ablation to create stockholder value, comply with Nasdaq continued listing requirements, generate capital from a transaction related to our building and pursue other strategic plans are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties, including the risk that for a variety of reasons we may not be able to execute on our strategic plans, and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission These forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date, except as required by law.
CONTACT: Tricia Ross Financial Profiles 310-622-8226 firstname.lastname@example.orgSource:BSD Medical Corporation