Healthcare firm HealthTronics said it has terminated its relationship with EDAP TMS of Lyon, France, related to U.S. clinical trials of EDAP's high-intensity focused ultrasound (HIFU) technology.
The termination is part of restructuring and cost-reduction initiatives HealthTronics began implementing last year, the company said.
Under the terms of the termination agreement, in addition to the termination of the original distribution agreement with EDAP, HealthTronics exercised warrants to acquire 200,000 EDAP shares for $300,000 and agreed to return to EDAP its technology used in the clinical trial, which is being transitioned to EDAP.
In addition, EDAP agreed to register with the U.S. Securities and Exchange Commission, the resale of the 200,000 EDAP shares (or related American Depositary Shares) acquired by HealthTronics. The Austin, TX-based HealthTronics said it also agreed to pay EDAP $600,000 in the future and may have to pay EDAP certain additional amounts in the future based on a formula related to the price at which HealthTronics resells the EDAP shares.
By AuntMinnie.com staff writers
April 10, 2007
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