news teaches a lesson in market caps. Think about this. You have Heartware with as I recall a mkt cap around 50 million bucks. You have VCR with a mrkt cap in hundreds of millions.
Now in the US a company is sold for under 15 million bucks with a similar non pulsatile suspended magnetic impeller.
And you don't think VCR shares are overvalued?
And don't go thinking that VCR has some patent case against Heartware based on a "magnetically levitated centrifugal rotary blood pump."
As I see it that is just about the generic method commonly used by non pulse devices.
I still think that Heartware is the best of them and have bought a few of those after studying the lot and particularly the cumbersome VCR. I am short VCR. Get advice before you take a position.
WorldHeart bags U.S. firm, pursues US$23M in fresh cash
By Ottawa Business Journal Staff
Tue, Feb 1, 2005 8:00 AM EST
WorldHeart's Novacor device
World Heart Corp. announced an acquisition south of the border late Monday and said it is in pursuit of up to US$23 million in new financing.
The company, in the midst of relocating its head office from Ottawa to its manufacturing centre in California, is buying MedQuest in a stock deal worth $14.7 million (all figures in U.S. dollars).
MedQuest, based in Salt Lake City, Utah, has developed a ventricular assist device called the HeartQuest described as a "magnetically levitated centrifugal rotary blood pump."
The product, in the final stages of development, will compliment WorldHeart's flagship product, the updated and redesigned Novacor heart assist device.
WorldHeart also said it is seeking $23 million in fresh financing through a private placement of stock and exercise of warrants. The company also intends to convert all of its debt in the form of debentures to common shares.
To acquire MedQuest, WorldHeart will issue 9.3 million common shares. Also, private investment firm Maverick Venture Management LLC will invest $12 million in World Heart by buying about 8.9 million common shares for $1.35 each.
Maverick is majority shareholder of MedQuest. Once the deal closes it will hold a 33-per-cent stake in the combined company and have the right to nominate candidates for two of the seats on WorldHeart's board of directors.
The combination of the acquisition and the debt conversion will eliminate all $13.3 million worth of WorldHeart's convertible debentures, add about $23 million to its cash position and increase its number of common shares outstanding to about 55.4 million from around 15.7 million. The new issue of stock will unwind part of the massive seven-for-one stock consolidation orchestrated by former chief executive Rod Bryden in the fall of 2003 as he fought to refinance the company.
WorldHeart said it will retain MedQuest's staff as well as co-founder and chief executive Pratap Khanwilkar.
VCR
ventracor limited
