Financings: OMI Medical files for Chapter 11; Draxis to sell 10% of its stock
A Medical Device Daily
OMI Medical Imaging (OMI: Weston Florida) reported that it and certain affiliated companies filed for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of Florida on Jan. 15.
Since the Deficit Reduction Act reimbursement cuts took effect on Jan. 1, 2007, the company says it has been unable to meet certain financial obligations to its secured lenders.
OMI operates 21 free-standing imaging centers that provide MRI and CT procedures. The centers are primarily located in Dade, Broward and Palm Beach counties.
During the bankruptcy proceedings, OMI said that it will maintain normal business operations for its referring physicians, patients and employees.
CEO Nelson Acosta stated, “We are very optimistic about the future of our business. The Chapter 11 filing will allow us to reorganize and restructure our operations so that we can fine tune our business and focus on providing the best possible service to our referring physicians and their patients. This is a very positive step to ensure the future viability of our company in a very challenging time for the medical imaging industry.”
OMI has retained the services of GlassRatner Advisory & Capital Group, to assist in restructuring its operations during the Chapter 11 proceeding. Thomas Santoro, a principal with GlassRatner, has been named chief restructuring officer and will work with Acosta and the company’s management to develop a plan to emerge from Chapter 11.
Santoro has experience leading companies through reorganizations and has held senior positions with several healthcare companies that dealt with financial and operational challenges.
OMI’s legal advisors are Shutts & Bowen.
OMI is a provider of MRI and CT diagnostics services.
Draxis Health (Mississauga, Ontario) said that it has received approval from the Toronto Stock Exchange (TSX) for its previously reported Normal Course Issuer Bid (NCIB) to purchase up to 4,072,054 common shares, which represent about 10% of the 40,720,539 common shares in the public float as at Jan. 14, 2008. As at Jan. 14, 2008, 42,062,538 common shares of Draxis were issued and outstanding.
Purchases may begin on Jan. 21, 2008, and the bid will end no later than Jan. 20, 2009, or earlier if the company purchases the maximum number of shares. All shares will be purchased through the facilities of the TSX and will be cancelled. During the previous 122 months, Draxis purchased 130,100 of its common shares at an average price of CDN $5.21 under a previous NCIB.
Subject to any block purchases made in accordance with the rules of the TSX, Draxis will be subject to a daily repurchase restriction of 23,084 common shares, which represent 25% of the average daily trading volume of Draxis’ common shares on the TSX for the six months ended December 31, 2007.
Draxis Health, through its subsidiary, Draxis Specialty Pharmaceuticals (Montreal), provides products in three categories: sterile products, non-sterile products and radiopharmaceuticals.