GAITHERSBURG, Md., Dec. 7, 2015 (GLOBE NEWSWIRE) -- Nuo Therapeutics, Inc. (OTCQX:NUOT), a pioneer in biodynamic therapies, today announced that on December 4, 2015, it entered into a limited consent with Deerfield Management, L.P. and certain of its affiliates, to modify certain provisions of the credit facility agreement ("Facility Agreement") between Nuo and Deerfield, as follows:
(i) For the period between December 4 and 17, 2015, the amount of cash that Nuo is required to maintain in a deposit account subject to control agreements in favor of the Deerfield lenders has been reduced from $5,000,000 to $1,375,000; and
(ii) The date for Nuo's payment of the accrued interest amount originally payable on October 1, 2015 has been extended to December 17, 2015.
In addition, on or before December 11, 2015, Nuo is required to engage a Chief Restructuring Officer acceptable to the Deerfield lenders, or the limited consent will no longer be effective and Nuo will be in default of the Facility Agreement. The parties had previously agreed, on November 11, 2015, to certain modifications of the Facility Agreement regarding cash balance requirements and interest payments for the period between the date of that modification and December 4, 2015.
We believe the extension will allow us to continue our discussions with the lenders, thereby permitting us to continue our operations, but we can provide no assurance that we will be successful in this effort. If we cannot agree on additional modifications to the Facility Agreement, we may be required to curtail or cease operations or, alternatively, seek court supervised protection from creditor claims. Any further agreement that we reach with the lenders under the Facility Agreement is expected to involve significant dilution to the ownership interests of holders of our common stock, and could involve other conditions causing the value of our common stock to decline further.
The Company will defer the conference call anticipated to be held on December 7, 2015 until further notice.
About Nuo Therapeutics
Nuo Therapeutics, Inc. (the "Company" or "Nuo") is a biomedical company that pioneers leading-edge biodynamic therapies for wound care. The Company's flagship product, Aurix is a biodynamic hematogel that harnesses a patient's innate regenerative abilities for the management of a variety of wounds. For additional information please visit www.nuot.com.
Aurix is the first platelet and plasma therapy system to be cleared by FDA for the management of a broad range of ulcers and exuding wounds, including:
- All types (diabetic foot ulcer, venous leg ulcer, pressure ulcer, etc.),
- All morphologies (partial thickness, full thickness and complex wounds),
- All severities (tunneling, sinus tract, bone, tendon and hardware exposure).
Unlike other cellular-based treatment options, Aurix is an autologous biodynamic hematogel that is derived from a patient's own platelets and plasma. The product is used at the point-of-care to stimulate the natural wound healing process from deep within the wound bed. For additional information, please visit www.AurixSystem.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and may contain the words "anticipate," "believe," "estimate," "expect," "intend," "the facts suggest," "will be," "will continue," "will likely result" or, in each case, their negative, or words or expressions of similar meaning.
These forward-looking statements include, but are not limited to, our limited sources of working capital; our need for substantial additional financing; our history of losses and future expectations; our short history and limited operating experience; our inability to comply with requirements imposed upon us by certain financing agreements, including from Deerfield Management Company, L.P., or Deerfield; our receipt of a gross royalty stream pursuant to the amended and restated license agreement; that our receipt of a gross royalty stream pursuant to the amended and restated license agreement with Arthrex will offer us a more predictable and valuable royalty stream over the life of that agreement; that Deerfield, or anyone else, will provide ongoing capital support; that Deerfield will agree to restructure our existing credit facility; our ability to satisfy the payment and cash balance requirements on December 17, 2015 upon the expiration of the modification to the credit agreement with the Deerfield lenders; our ability to engage a Chief Restructuring Officer acceptable to the Deerfield lenders on or before December 11, 2015, and if so engaged, our ability to maintain such officer through December 17, 2015 or thereafter, as needed; our ability to negotiate further modifications of the credit facility with the Deerfield lenders; whether the lenders under the Deerfield credit facility may declare an event of default under the agreement and foreclose on our assets; the risk of substantial dilution to the ownership interests of holders of our common stock that may result from a further modification of the credit facility with the Deerfield lenders; the risk that our common stock becomes devalued as a result of a dilutive event related to the Deerfield credit facility; the volatility of our stock price; whether we have correctly estimated the resources necessary to execute under our existing customer agreements and seek partners, co-developers or acquirers for our regenerative therapies under the realignment plan; and other risks and uncertainties described in our filings with the U.S. Securities and Exchange Commission, including our most recent reports on Forms 10-K, 10-Q and 8-K, and any amendments thereto. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results could differ materially from those anticipated in these forward-looking statements, and our business, results of operations, financial condition and cash flows may be materially and adversely affected. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Except to the extent required by applicable law or rules, the Company undertakes no obligation and does not intend to update, revise or otherwise publicly release any revisions to its forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events.
Source:Nuo Therapeutics, Inc.