Escalon® Medical Corp. Pays In Full Its Refinanced Debt
WAYNE, Pa., Oct. 18, 2012
WAYNE, Pa., Oct. 18, 2012 /PRNewswire/ --Escalon Medical Corp. (Nasdaq: ESMC)
today announced the payment in full of its refinanced debt in connection with
the acquisition of certain assets of Biocode Hycel ("Biocode"). On December
31, 2008 Drew Scientific, Inc. ("Drew") acquired certain assets of Biocode for
$5,900,000 (4,200,000 Euros) plus acquisition costs of approximately $300,000.
The purchase price was paid with cash of approximately $324,000 (approximately
231,000 Euros) and $5,865,000 in seller-financed debt. The Company and its
debt holder reached an agreement whereby the Company has paid the balance of
the seller-provided financing of approximately $4,149,516 with a one-time
payment of $2,487,480 resulting in a gain on extinguishment of debt of
$1,662,036. The repayment of the debt has reduced the current portion of the
Company's long-term debt to zero.
"The payment of the debt is the last remaining item in connection with the
recent sale of the Escalon Clinical Diagnostics business. Now management is
able to focus its full efforts and resources into our Sonomed Escalon
ophthalmic business" said Richard J. DePiano, Jr., President of Escalon. "We
have had to spread our time and resources among various business units over
the past several years, but we now can concentrate our efforts back to our
roots, ophthalmology, with the goal of enhancing our ability to strategically
expand our ophthalmic business. We are energized by the prospect of having
the means to selectively pursue opportunities for synergistic growth."
Founded in 1987, the Company (www.escalonmed.com) develops markets and
distributes ophthalmic diagnostic and surgical products. The Company seeks to
utilize strategic partnerships to help finance its development programs and is
also seeking acquisitions to further diversify its product line to achieve
critical mass in sales and take better advantage of the Company 's
distribution capabilities, although such partnerships or acquisitions may not
occur. The Company has headquarters in Wayne, Pennsylvania and operations in
Long Island, New York, New Berlin, Wisconsin, and Stoneham, Massachusetts.
Note: This press release contains statements that are considered
forward-looking under the Private Securities Litigation Reform Act of 1995,
including statements about the Company's future prospects. These statements
are based on the Company's current expectations and are subject to a number of
uncertainties and risks, and actual results may differ materially. The
uncertainties and risks include whether the Company is able to:
oimplement its growth and marketing strategies, improve upon the operations
of the Company business units, including the ability to make acquisitions
and the integration of any acquisitions it may undertake, if any, of which
there can be no assurance,
ogrow our remaining ophthalmic business unit,
oimplement cost reductions,
oidentify, finance and enter into business relationships and acquisitions.
Other factors include uncertainties and risks related to:
onew product development, commercialization, manufacturing and market
acceptance of new products,
omarketing acceptance of existing products in new markets,
oresearch and development activities, including failure to demonstrate
odelays by regulatory authorities, scientific and technical advances by the
Company or third parties,
ointroduction of competitive products,
oability to reduce staffing and other costs and retain benefit of prior
othird party reimbursement and physician training, and
ogeneral economic conditions.
Further information about these and other relevant risks and uncertainties may
be found in the Company's report on Form 10- K for year ended June 30, 2012,
and its other filings with the Securities and Exchange Commission, all of
which are available from the Securities and Exchange Commission as well as
SOURCE Escalon Medical Corp.
Contact: Richard J. DePiano, Chairman and CEO, +1-610-688-6830
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