NEW YORK (Thomson Financial) - Abiomed Inc. Wednesday said it had entered
into a strategic alliance with World Heart Corp. wherein it will have the right
of first refusal to act as an exclusive worldwide distributor for any future
World Heart product.
Under the terms of the agreement, Abiomed will loan World Heart a $5 million
convertible secured note, with a term of 2 years and bearing 8% interest per
year. The note can be converted, at Abiomed's option, into common shares of
World Heart valued at $1.75 a share, and representing a 19.9% ownership stake in
the company.
Abiomed will also have the right to designate one nominee to World Heart's
board of directors.
Shares of Abiomed, a manufacturer of circulatory medical products, closed
Tuesday at $14.45.
Shares of World Heart, a manufacturer of artificial heart technologies,
closed Tuesday at $2.59
Ryan Vlastelica
rv/tk1
COPYRIGHT
Copyright Thomson Financial News Limited 2007. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|