Jan 3 2011
EDAP TMS SA (Nasdaq:EDAP), the global leader in therapeutic ultrasound, announced today that it entered into agreements with certain holders of its senior debentures and warrants to redeem part of EDAP's outstanding convertible debt and cancel some of its outstanding warrants. Pursuant to these agreements, the Company issued 1,441,743 ordinary shares in the form of American Depositary Shares in exchange for 4,558 senior debentures (equivalent to USD 4,558,000) and 986,965 warrants, reducing the current outstanding debt by USD 4.6 million to USD 10.5 million (EUR 7.9 million).
Marc Oczachowski, Chief Executive Officer of EDAP TMS, commented, "We are particularly pleased with this very positive move to reduce the Company's indebtedness as it enhances our financial flexibility. The agreement with some of our bond and warrant holders strengthens the Company's financial profile and reduces some of our future financial obligations."
Mr. Oczachowski continued, "This significant improvement, together with the Company's efforts to reduce and tightly control its operational expenses, will increase the Company's ability to finance its development programs in the future. We are taking steps to position Ablatherm-HIFU as the optimum focal therapy treatment option for prostate cancer and advancing our technology for other new oncology indications."