OAKLAND, Calif., May 9 /PRNewswire-FirstCall/ -- (Nasdaq: WHRT, TSX: WHT) Since January 2008, World Heart Corporation (the "Company") has aggressively pursued various financing alternatives to raise additional capital, including through equity financing transactions and corporate collaborations, in order to continue operations. At April 30, 2008, the Company had cash and cash equivalents of approximately $0.5 million and current liabilities of approximately $2.6 million. On May 2, 2008, the Company learned that its potential primary investor may not be able to give its assurance of commitment to allow the Company to access capital to meet current financing needs. This information resulted in the Company making the determination that its available cash would be insufficient to pay the Company's obligations as they become due, which constitutes an event of default under the Company's secured convertible promissory note in the amount of $5.0 million issued on December 11, 2007 to Abiomed, Inc. This event of default under the note results in the outstanding principal balance of the note, together with accrued but unpaid interest and any other amounts owing under the Abiomed note documents, becoming immediately due and payable to Abiomed. The note is secured by security agreements entered into by the Company and the Company's wholly-owned subsidiary, World Heart, Inc. ("WHI"), in favor of Abiomed, that grant a security interest in all of their respective assets. Abiomed could exercise its remedies under law and under the security agreements, including foreclosing on the assets of the Company and WHI. An event of default also permits Abiomed to terminate the clinical and marketing support services agreement.
The Company has an immediate need for additional capital in order to
satisfy its obligations and to continue operations. The Company continues
to aggressively pursue various financing alternatives but its efforts to
raise additional capital have not been
|SOURCE World Heart Corporation|
Copyright©2008 PR Newswire.
All rights reserved