SILVERWOOD PARTNERS ADVISES CARDIOTECH INTERNATIONAL, INC. IN SALE OF CATHETER AND DISPOSABLES TECHNOLOGY, INC. SUBSIDIARY TO TACPRO, INC.SHERBORN, MA – March 31, 2008
CardioTech International, Inc. (AMEX: CTE), a developer and manufacturer of advanced materials and medical devices for the treatment of cardiovascular and other diseases, announced today that it has sold its Catheter and Disposables Technology, Inc. subsidiary (“CDT”) to TACPRO, Inc. TACPRO, Inc. is a medical device and design company that is a full-service provider of high quality medical devices and specializes in catheters and delivery systems. The purchase price was approximately $1.2 million in cash, of which $240,000 of the purchase price will be held in a one-year escrow to fund CardioTech’s post-closing indemnification obligations to TACPRO, Inc., if any. After the escrow funding and estimated transaction costs, CardioTech will realize approximately $734,000 in cash proceeds from the sale of CDT. CardioTech will incur an additional non-cash expense related to warrants issued in connection with an investment bank that advised CardioTech. Silverwood Partners was the exclusive financial advisor to CardioTech.
Commenting on the sale of CDT, President and CEO Michael Adams, CardioTech, said, “The sale of CDT provides TACPRO, Inc. an excellent opportunity to expand its operations into the Minnesota medical device region. CardioTech’s direction is targeted to being a world class technology business focused on customer-driven solutions in the medical device industry. The sale will permit the ongoing redeployment of capital into our growth initiatives focused on licensing and selling specialized materials to medical device manufacturers. The sale of CDT is an important milestone which allows CardioTech to direct management expertise and resources into executing the Company’s strategic growth plan.”
Nitin Matani, President/CEO, TACPRO, Inc. said, "CDT represents an opportunity for TACPRO, Inc. to expand its presence in the Midwest region. The acquisition of CDT is the first step in achieving our strategic growth objective. We are excited at being able to extend additional resources, experience, and knowledge to our current and future customers."
About CardioTech International
CardioTech International, Inc. is a medical device company that designs, develops, manufactures and sells innovative products and materials for the treatment of cardiovascular, orthopedic, oncology, urology and other diseases. The Company's business model calls for leveraging its technological and manufacturing expertise in order to expand its royalty and license fee income, develop next generation polymers and manufacture new and complex medical devices. CardioTech is conducting its first clinical trial for regulatory approval in Europe for its CardioPass(TM) synthetic coronary bypass graft. The Company generates revenues from sales of advanced medical devices and materials, as well as from contracted product design and development services. More information about CardioTech is available at its website: http://www.cardiotech-inc.com.
About Silverwood Partners
Silverwood Partners is a sector focused investment bank that provides M&A and private capital raising advisory services to information, communications, financial services, and digital imaging technology companies, and healthcare, industrial and consumer companies. Silverwood delivers acquisition, divestiture or corporate sale advisory, strategic-financial advisory and institutional financing services to companies in its targeted business sectors. For additional information, please visit www.silverwoodpartners.com.
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