VÄSTRA FRÖLUNDA, Sweden--(BUSINESS WIRE)--Regulatory News:
The Board of Directors and the CEO of Artimplant AB (publ) (STO:ARTIB) have decided to apply for its own bankruptcy.
The reasons behind the insolvency and the liquidity problems are related to the ongoing litigations in the USA, where Artimplant has been sued by approx. 50 patients who claims they have been injured by the CMC Spacer, and the ongoing Arbitration in Sweden, which has been initiated by Artimplant to determine which insurance company or insurance broker are responsible for each claim related to the litigations in the USA.
The ongoing disputes have had a negative impact on Artimplant's sales and have also occupied the management’s recourses which have resulted negatively on the company’s development.
Parallel to this there has been an intensive work to try to find a new main shareholder, attract new capital to the company and to find new improved distribution channels. The Board has been in discussions with potential investors and other interested parties but the ongoing disputes substantially reduced the interested to invest in the company. The Board has also discussed a possible new right issue of shares but during the current circumstances decided this will not be possible to achieve.
Taking all this into consideration it has not been possible to fulfil the earlier signed agreement with Tiller.
The Board and the CEO has therefore reached the conclusion to apply for Artimplant's bankruptcy.
Västra Frölunda, August 1, 2013
The Board of Directors
Artimplant is a biomaterials company focused on solutions to problems in orthopedic. We restore health through the development, production and marketing of degradable implants that regenerate body functions and improve quality of life. Our products, made from Artelon®, meet unmet clinical needs and are marketed in a growing number of therapy areas. Artimplant produces implants for treatment of osteoarthritis in hands and feet, for shoulder and other soft tissue injuries.
Artimplant is a public company listed on the OMX Nordic Exchange Stockholm in the Small Cap segment and in the healthcare sector.
This press release contains forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations and to attract and retain qualified professionals; technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings.
This is information which Artimplant shall make public pursuant to the Swedish Financial Instruments Act and the Swedish Securities Exchange and Clearing Operations Act and/or stock market agreements. Information was made available for publication on August 1, 2013 at 8:45 AM (CET).
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