Collagen Corp. to Proceed with Spin-Off.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BW HealthWire)--Oct. 6, 1997--Collagen Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CGEN CGEN Convective Sigmet Generation ) today announced that it has determined to proceed to separate its Aesthetics Technologies business and its Collagen Technologies business into two independent, publicly-traded companies. The separation will be effected through a complete, 100-percent spin-off, or distribution of shares to Collagen stockholders as of a record date to be determined. The transaction is subject to a number of conditions, including, without limitation, receipt of a ruling from the Internal Revenue Service ("IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. ") that the transaction will be tax-free to Collagen and its stockholders. Collagen is in the process of preparing a ruling request for submission to the IRS in the next few weeks. Actual timing of the distribution will depend upon tax, legal and other considerations, and is expected to be completed by fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. . "As we have previously discussed, Collagen has been preparing for this separation and evaluating, with its financial advisors, legal counsel and accountants, alternative strategies for its Aesthetic Technologies and Collagen Technologies businesses for several months," stated Gary Petersmeyer, president and chief executive officer of Collagen. "We are pleased to announce this strategy to our stockholders and look forward to working to complete the spin-off as soon as possible. I believe the focus of Aesthetic Technologies on the needs of patients and their physicians, the Collagen history of success in this field, and our ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our position in the marketplace will serve our customers very well. Collagen Technologies is focused on commercializing and leveraging technology to address important clinical and large market opportunities. The key technical platforms include polymer conjugate conjugate /con·ju·gate/ (kon´jdbobr-gat) 1. paired, or equally coupled; working in unison. 2. a conjugate diameter of the pelvic inlet; used alone usually to denote the true conjugate diameter; see technology and recombinant human collagens. Major market areas are guided tissue repair and regeneration or surgery through Cohesion Corporation, an 83% owned affiliate, and orthopaedics. Much of the separation is in place internally and our employees are excited about the focus we are bringing to these separate businesses," Petersmeyer added. Collagen Corp. is a technology-based company that develops, manufactures and markets biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. devices for the treatment of defective, diseased, traumatized or aging human tissues. The matters discussed in this press release are forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Collagen's actual activities with regard to its Aesthetic Technologies and Collagen Technologies businesses may differ significantly from those discussed in the forward-looking statements, given the legal, tax, market and operational uncertainties associated with the separation of these businesses. Actual activities of Collagen may be affected by, among other things, future results of operations, strategic decisions by management or the Board of Directors, as well as those factors set forth under the heading "Factors That May Affect Future Results of Operations" in Collagen's Annual Report on 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, 1997. CONTACT: Collagen Corporation Lisa Morgensai, 650/856-0200 |
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