DARA BioSciences, Inc. (“Company”) announced on January 30, 2009 that it consummated a stock purchase and loan agreement and related agreements (the “Purchase and Loan Agreement”) with SurgiVision, Inc. (“SurgiVision”) pursuant to which DARA received $1,000,000 of total proceeds. These proceeds, together with cash on hand and the anticipated sale proceeds for the Company’s shares of MiMedx Group, Inc. (OTCBB:MDXG), which become freely saleable by the Company in February 2009, will be used as working capital for the Company to continue operations according to its previously reported plan to reduce capital spending, conserve cash and prudently add value of its therapeutic assets. While the trading volume and attendant liquidity of the MiMedx shares is currently low, the Company believes that the MiMedx trading volume may soon increase since “lock-up” agreements encumbering the vast majority of MiMedx shares will expire in February.
Continuing SurgiVision Investment
In addition, DARA owns approximately 7.7% of SurgiVision, Inc., a private medical device company focused on developing and commercializing interventional magnetic resonance imaging (MRI) technologies. On April 15, 2008, Boston Scientific announced a licensing and development arrangement with SurgiVision for MRI-safe technology. As stated in that press release, physician implanters have consistently mentioned MRI-safe cardiac devices as a primary unmet clinical need. Under the arrangement, Boston Scientific gained access to SurgVision’s development capabilities and obtained a license to SurgiVision’s intellectual property for potential use in its implantable cardiac devices. As also reported by Boston Scientific, in December 2005, Boston Scientific and SurgiVision entered into a separate licensing and development agreement in the area of neuromodulation. DARA has been an investor in SurgiVision since 2004.
PDF (1.5 MB)Magnetic Resonance Tomography