QUEBEC, June 16, 2011 /CNW Telbec/ - Victhom Human Bionics Inc.
"Victhom," (TSXV: VHB) announced today that the 44.4% participation of
its wholly-owned subsidiary, 4504054 Canada Inc., in Neurostream
Technologies G.P. ("Neurostream") was acquired by its joint venture
partner 4491343 Canada Inc., a related party to Otto Bock Healthcare
("Otto Bock") for an aggregate consideration of $10 million in cash as
well as the payment of royalties on the future net sales of the
Neurostep® System and eventual monetization proceeds of the sleep apnea and
epilepsy technologies of Neurostream.
The effective date of this transaction will be June 30, 2011, at which
time Otto Bock will pay the first tranche of $5 million of this
consideration, the balance being payable on February 1, 2012 and
secured by a first demand irrevocable bank guarantee. Proceeds from the
transaction will be used, as per the incorporating documents of Victhom
and the conditions of the outstanding Series "A" preferred shares, to
redeem these shares for up to approximately $7 million and for other
general corporate purposes.
As previously announced by Victhom, Neurostream had not met certain
partnership milestones, which, pursuant to the terms of the partnership
agreement of Neurostream, triggered a call right in favor of Otto Bock
to acquire the indirect interest of Victhom in Neurostream. It must be
noted that even though Neurostream had not achieved a milestone on May
1st, 2010 linked to the European certification of the product in
development, Otto Bock had continued to fund the operations of
Neurostream on a voluntary basis and had advanced to Neurostream
$11.5 million which were used for the continued development of the
Post transaction, Victhom will manage its relationship with its two
major partners to maximize value from the products that will generate
royalties on a going-forward basis. The main assets of Victhom will be
composed of the O&P patent portfolio licensed to Ossur and the royalty
agreement with Otto Bock.
Mr. Normand Rivard, Chief Executive Officer, commented: "This is a
positive outcome for Victhom as the proceeds from this transaction will
provide us with immediate access to capital to strengthen our balance
sheet while keeping up-side potential from the sales to be generated
from Neurostream's unique neuromodulation technology platform. Combined
with the royalty stream from the second generation of the Power Knee
which, as previously announced, was launched by our partner Ossur
earlier this year, I believe the Company is well positioned to generate
value for our shareholders on an ongoing basis." He added: "We would
like to thank our joint venture partner, Otto Bock, for helping build
value in our joint venture which has resulted in a mutually beneficial
"Neurostimulation is clearly identified as a further driver of growth
for Otto Bock that opens a new technological field for us. Further to
our work during the last years, we will now be able to consolidate all
neurostimulation activities of the group and reach synergies in
development, manufacturing, and sales and marketing with the other
neurostimulation sites: Neurodan in Aalborg, Denmark and Otto Bock,
Vienna, Austria," said Mr. Johannes Schneider Littfeld, CEO
Neurostimulation, Otto Bock. He added: "We would like to express our
thanks to our joint venture partner for all the effort put into this
Victhom is a company which owns patents in the field of orthotics and
prosthetics ("O&P), including intellectual property used in the Power
Knee, the world's first and only motor-powered prosthesis for
above-knee amputees, a product distributed under license agreement by
Ossur, a global leader in the O&P market. The Company also has a
royalty agreement related to the Neurostep® System and neuromodulation products in other indications (sleep apnea
and epilepsy) using the Neurobionix technology platform currently under
development by Neurostream Technologies, a General Partnership now
owned by Otto Bock, a global leader in the O&P market.
About Otto Bock
Otto Bock Healthcare is a global market leader in prosthetics and is on
a steady growth course thanks to its leading technology for people. The
Company has been owner-managed ever since it was founded in 1919. With
headquarters in Duderstadt, Germany, Otto Bock Healthcare has
subsidiaries in 43 countries and employs 4,500 people around the world.
In 2010, the company's sales reached €529 million.
The Company has been active in the North American market since 1958,
when Otto Bock USA subsidiary was founded in Minneapolis. Otto Bock
Healthcare is also represented in Canada trough its Toronto subsidiary.
The Company has a global infrastructure in the field of neurostimulation
with offices in Austria, Denmark, Canada, and the US. The Company is
headed by President & CEO Professor Hans Georg Näder.
Some of the statements made herein may constitute forward-looking
statements. These statements relate to future events or our future
financial performance and involve known and unknown risks,
uncertainties, and other factors that may cause Victhom's actual
results, performance, or achievements to be materially different from
those expressed or implied by any of Victhom's statements. Actual
events or results may differ materially. We disclaim any intention, and
assume no obligation, to update these forward-looking statements.
SOURCE VICTHOM BIONIQUE HUMAINE INC.
For further information:
Source: Victhom Human Bionics Inc.
| For more information about Victhom: |
| Normand Rivard |
President & CEO
Victhom Human Bionics Inc.
Tel.: 418-872-5665 ext: 107
| || www.victhom.com |
| || |
| Otto Bock press relations: |
| Dirk Artmann |
Director, Corporate Communications / Company Spokesman
Tel.: +49 (0)5527 848 3036