Cardiac Pathways Reports Noncompliance With Loan Covenants and Exploration of Strategic Alternatives.SUNNYVALE, Calif.--(BW HealthWire)--March 22, 1999--Cardiac Pathways Corp. (Nasdaq:CPWY) announced today that it has partially collateralized its loan obligation to Silicon Valley Bank with a $3 million restricted cash pledge, and that it expects Silicon Valley Bank to require the company to pledge an additional $3.3 million of its cash on March 23, 1999 or shortly thereafter. The company is not in compliance with certain financial covenants required by the company's loan agreement, under which Silicon Valley Bank may require the company to collateralize collateralize To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities. up to 105% of the $6 million principal balance of the loan as long as the company remains out of compliance with its covenants. In addition, Cardiac Pathways announced that it has retained Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. & Co. as financial advisor to assist the company to analyze
and pursue strategic alternatives, including raising additional capital
or the sale of the company. The company is actively seeking additional
financing to enable the company to proceed with its clinical trials and
sale and marketing of its products.
Cardiac Pathways designs, develops and manufactures minimally invasive invasive /in·va·sive/ (-siv) 1. having the quality of invasiveness. 2. involving puncture of the skin or insertion of an instrument or foreign material into the body; said of diagnostic techniques. systems to diagnose diagnose /di·ag·nose/ (di´ag-nos) to identify or recognize a disease. di·ag·nose v. 1. To distinguish or identify a disease by diagnosis. 2. and treat cardiac tachyarrhythmias (abnormally rapid heart rhythms Noun 1. heart rhythm - the rhythm of a beating heart cardiac rhythm regular recurrence, rhythm - recurring at regular intervals atrioventricular nodal rhythm, nodal rhythm - the normal cardiac rhythm when the heart is controlled by the ). The company is a pioneer and leader in the development of complete, integrated mapping and ablation ablation /ab·la·tion/ (-shun) 1. separation or detachment; extirpation; eradication. 2. removal or destruction, especially by cutting. ab·la·tion n. systems for the diagnosis and treatment of heart rhythm disturbances. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about the company's loan agreement with Silicon Valley Bank, the company's pursuit of strategic alternatives and additional financing, and the company's ability to continue with clinical trials and the sale and marketing of its products. These forward-looking statements involve assumptions, risks, and uncertainties. Actual results may vary materially. Among the risks and uncertainties, the company's loan agreement may be subject to further adverse actions by Silicon Valley Bank, the company may not successfully raise additional financing or complete other strategic alternatives, such as a sale of the company, and the company may not be able to continue to develop and market its products. If the company fails to raise additional financing or complete other strategic alternatives, the company will not have sufficient resources to successfully commercialize its products or continue its operations. Actual results could also differ materially as a result of factors including the progress of its clinical trials, actions relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc regulatory matters, the costs and timing of expansion of product development, manufacturing, marketing and sales activities, the extent to which the company's products gain market acceptance and competitive developments. Further risks are detailed in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended June 30, 1998 and Forms 10-Q for the three month periods ended September 30, 1998 and December 31, 1998. |
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