Financings In Brief
This article was originally published in The Gray Sheet
Executive Summary
ATS Medical raises settlement funds: Heart valve manufacturer raises $20 million through the sale of 8.5 million shares of its common stock at $2.35 each, plus warrants to buy 2.5 million more shares at various prices, to venture capital firm Essex Woodlands Health Ventures. A portion of the proceeds will be used to settle a 2007 lawsuit filed by Carbomedics over a mechanical heart valve component supply agreement. The settlement, announced in conjunction with the financing on Dec. 22, will enable ATS to continue to make and sell its Open Pivot mechanical heart valve in exchange for a $3 million payment to Carbomedics on Dec. 29, 2008, and an additional $4.5 million on April 30, 2009