MedicalCV repurchases outstanding series A convertible preferred stock

By Sheri Kasprzak

New York, Dec. 22 - MedicalCV, Inc. said it has repurchased some of its outstanding series A convertible preferred stock from six holders.

The company repurchased 14,988 shares of the 5% preferreds. The preferreds will be converted into a total of 45,068,916 newly issued common shares.

Also, MedicalCV agreed to reduce the strike price on outstanding warrants for 22,969,500 common shares to $0.325 from $0.50. The expiry of those warrants was also accelerated to Jan. 6, 2006 from April 1, 2010.

The repurchase transaction is slated to close by Jan. 6.

"The company entered into the foregoing agreements to raise approximately $6 million of new money to complete its current clinical product development studies and finalize market preparation for commercialization of its Atrilaze surgical ablation system," said the company's statement released Thursday. "Other purposes of the transaction include eliminating both the cash dividends due under such preferred stock and a significant portion of the liability associated with the warrants, and reducing the overhang of equity-linked securities, thereby improving the company's overall capital structure."

Based in Minneapolis, MedicalCV develops medical devices used to treat cardiovascular disorders.

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