BRANFORD, Conn., March 29, 2016 (GLOBE NEWSWIRE) -- CAS Medical Systems, Inc. (NASDAQ:CASM) (CASMED), a leader in medical devices for non-invasive patient monitoring, announces the sale of assets related to its neonatal intensive care disposables product line to Trinity Medical Devices Inc. The sale is in the amount of $3.35 million, subject to certain inventory adjustments, with up to $400,000 of additional proceeds if certain sales targets are reached within the next 12 months. The product-line sale provides additional working capital for the Company’s investments in its core business, the FORE-SIGHT® cerebral oximetry products.
The neonatal product line includes the Klear-Trace® electrodes and NEOGUARD® disposable temperature probes, reflectors, and arm boards.
“The sale of this legacy product line allows us to tighten further our strategic focus on our FORE-SIGHT cerebral oximetry business where we see opportunities for continued market penetration and growth,” remarked Thomas M. Patton, President and Chief Executive Officer of CASMED.
Under the agreement, CASMED will provide certain transition services as necessary, including manufacturing and customer service, to ensure that all customer needs will be satisfied without interruption while operations are transitioned to Trinity Medical Devices.
“We are excited about the addition of the neonatal disposables product line and look forward to building relationships with our new customers,” said John Easom, Chief Executive Officer of Trinity Medical Devices. “With the highly regarded Klear-Trace and NeoGuard brands, the neonatal product line has great potential to fulfill the needs of an expanded range of customers and fits nicely within our product portfolio.”
Trinity Medical Devices is a consumable medical products company specializing in delivering high-quality commodity products to the global market.
CASMED will reclassify the results of the neonatal product line to discontinued operations effective with the quarter ending March 31, 2016. Sales of the divested neonatal disposables products were $2.1 million for each of calendar years 2015 and 2014.
About CASMED® – Monitoring What's Vital
CASMED is a leading developer and manufacturer of medical devices for non-invasive patient monitoring. The Company's FORE-SIGHT Absolute Cerebral Oximeter provides a highly accurate, non-invasive, continuous measurement of absolute cerebral tissue oxygen saturation for patients during critical care. Direct monitoring of tissue oxygenation provides a superior and powerful tool to alert clinicians to otherwise unrecognized and dangerously low levels of oxygenation of the brain and other tissues, thereby allowing them to intervene appropriately in the care of their patients. In addition to FORE-SIGHT Oximeters and accessories, the Company provides proprietary non-invasive blood pressure monitoring solutions for OEM use and service. For further information regarding CASMED, visit the Company's website at www.casmed.com.
Statements included in this press release, which are not historical in nature, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements relating to the future performance of the Company are subject to many factors including, but not limited to, the customer acceptance of the products in the market, the introduction of competitive products and product development, the impact of any product liability or other adverse litigation, working capital and availability of capital, commercialization and technological difficulties, the impact of actions and events involving key customers, vendors, lenders, competitors, and other risks detailed in the Company’s Form 10-K for the year ended December 31, 2014, and other subsequent Securities and Exchange Commission filings.
Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. When used in this press release, the terms "anticipate", "believe", "estimate", "expect", "may", "objective", "plan", "possible", "potential", "project", "will", and similar expressions identify forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and we do not undertake any obligation to update any forward-looking statements, whether as a result of future events, new information, or otherwise.
CAS Medical Systems, Inc.
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Source:CAS Medical Systems, Inc.