Hospital Centers and Their Patients to Benefit from a Stronger Financial Foundation for Service, Research and Development
Tucson, AZ – July 2, 2016 – SynCardia Systems, Inc. (“SynCardia” or the “Company”) announced today that it has entered into an asset purchase agreement (“APA”) with an affiliate of Versa Capital Management, LLC (“Versa”) to acquire substantially all of the Company’s assets and operations, bringing with it the ability to provide the capital necessary for SynCardia to realize its full potential as the world’s first and only FDA, Health Canada and CE approved provider of the Total Artificial Heart and drivers, including the Freedom portable driver allowing clinically stable patients to be discharged from the hospital and live at home and in their communities. The partnership with Versa ensures a solid financial footing on which the Company can execute its business plan and accelerate its growth trajectory.
The Company’s day-to-day operations providing top quality hospital service and patient care will continue without interruption during the acquisition, which will require a brief court process under Chapter 11. “Our first priority has been and will always be the relationship with our hospitals and the care of their many patients, none of which will be adversely effected by this sale process,” said Michael Garippa, Chief Executive Officer of SynCardia. “We have developed a transaction structure to free the organization from substantial liabilities and maximize the value of our business. This sale provides a strong foundation for future growth and development of our next generation driver system, the Freedom 2. We are acting to ensure that SynCardia will be in the best position to provide lifesaving treatments for end-stage heart failure and to adapt our business to meet the changing needs of the healthcare industry.”
To fund operations, Versa has agreed to provide the Company with debtor-in-possession financing. This financing, along with existing cash on hand and collections from ongoing operations, will ensure that SynCardia has adequate liquidity to continue to provide products and services to over 120 SynCardia Certified Centers worldwide during the sale process.
The Company has filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the Delaware Bankruptcy Court (the “Court”). The Versa APA will require Court approval (subject to higher or better offers). The Company has proposed that the sale process be completed in approximately 45 days.
Additional information, including Court filings and other documents related to the Company’s Chapter 11 case, can be found by visiting: https://omnimgt.com/SynCardia.
Ankura Consulting Group, LLC is serving as restructuring advisor, Olshan Frome Wolosky LLP is serving as legal advisor and Canaccord Genuity Inc. is serving as investment banker.
About SynCardia Systems, Inc.
SynCardia is a medical technology company, incorporated in 2001, that is focused on developing, manufacturing and commercializing the SynCardia Total Artificial Heart, an implantable system designed to assume the full function of a failed human heart in patients suffering from advanced heart failure. With approximately 1,600 implants to date, the SynCardia Total Artificial Heart accounts for over 95% of all artificial heart implants ever completed.
About Versa Capital Management, LLC
Based in Philadelphia, Versa Capital Management, LLC is a private equity investment firm with more than $1.4 billion of assets under management focused on control investments in special situations involving middle market companies where value and performance growth can be achieved through enhanced operational and financial management. More information can be found at www.versa.com.
Except for the historical information contained herein, this press release and the statements of representatives of the Company related thereto contain or may contain, among other things, certain forward-looking statements, all of which are based on various estimates and assumptions and will not be updated to reflect events occurring after the date hereof. Such information and statements are subject to inherent uncertainties and to a wide variety of significant business, economic and competitive risks, including, among others, those described herein. Consequently, actual events, circumstances, effects and results may vary significantly from those included in or contemplated by such projected financial information and such other forward-looking statements. These forward-looking statements projected financial information is, therefore, not necessarily indicative of the future financial condition or results of operations of the Company, which in each case may vary significantly from those set forth in such projected financial information.
Vice President of Communications
SynCardia Systems, Inc.