Denver Biomedical Corrects and Replaces Previous Release Regarding Acquisition, BW2686, CO-DENVER-BIOMEDICAL.Business Editors & Health/Medical Writers CORRECTION...by Denver Biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. NOTE: The following news release replaces and corrects the previous Denver Biomedical news release, which ran earlier today, Oct. 2, on Business Wire, BW2686 (CO-DENVER-BIOMEDICAL), and contained an incorrect quote regarding Denver Biomedical's maintained presence in Colorado. DENVER--(BW HealthWire)--Oct. 2, 2000 Local Management Group Acquires Denver Biomedical From Houston-Based Parent Company Bonnie Vivian Takes Helm of Newly-Independent Company as President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Denver Biomedical Inc. announced that effective Sept. 15, 2000, it completed a management-led leveraged buyout leveraged buyout, the takeover of a company, financed by borrowed funds. Often, the target company's assets are used as security for the loans acquired to finance the purchase. of the company, which was previously a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Lifestream International in Houston, Texas. With the acquisition, the company changed its name from Denver BioMaterials to Denver Biomedical. Led by Bonnie Vivian, former VP of Denver BioMaterials, a local investment group began negotiating with Lifestream in May 2000. The deal was finalized in September using three Denver firms. Equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. was provided by Quest Capital Partnership, subordinate debt See Junior debt. was supplied by New West Mezzanine Fund, and senior bank financing was provided by Colorado Business Bank. "We're deeply invested in this company, and not just financially," says Vivian, now president and CEO. "For 25 years we've manufactured medical implants that improve the quality of life for patients, many in the final stages of a terminal disease. And we've done it in Colorado. "Colorado is where we want to stay," Vivian says. "As a subsidiary of a larger company, our ability to maintain our presence in Colorado was uncertain. With this buyout, we reclaim the right to chart our own future and reinvest in ourselves." Quest Capital Partnership was attracted to Denver Biomedical because it's a Denver-based medical device company with long-standing brand equity. "Denver Biomedical has sound products and a solid management team," says General Partner David Link of Quest Capital. "We believe the company will prosper under local ownership. Additionally, it's consistent with our philosophy to fund a company whose products improve people's lives." Denver Biomedical's growth is partially attributed to the success of the Pleurx(TM) Pleural Pleural Pleural refers to the pleura or membrane that enfolds the lungs. Mentioned in: Pneumothorax pleural emanating from or pertaining to the pleura. Catheter System used to treat pleural effusion Pleural Effusion Definition Pleural effusion occurs when too much fluid collects in the pleural space (the space between the two layers of the pleura). It is commonly known as "water on the lungs. , or fluid build-up around the lungs -- a condition primarily affecting lung and breast cancer patients. By relieving pressure in the chest it alleviates painful shortness of breath Shortness of Breath Definition Shortness of breath, or dyspnea, is a feeling of difficult or labored breathing that is out of proportion to the patient's level of physical activity. . And it saves millions of dollars a year by decreasing inpatient hospital stays from six days to a one-day outpatient procedure. "Along with getting Pluerx firmly positioned in the international market, we're developing new devices that will improve the quality of life for patients by treating them at home," Vivian says. "These devices will perpetuate high growth and profits." Denver Biomedical Inc. is an international medical device company headquartered in Golden, Colo., that specializes in implantable catheters and shunts for critically ill patients. For more information visit www.denverbiomedical.com or call 1-800/824-8454. |
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