AVACEN Explores Strategic Business Alternatives
San Diego, CA – February 2, 2016 – AVACEN Medical, a privately held medical device company, announced that its Board of Directors has authorized a process to explore a range of strategic alternatives to enhance shareholder value. The Company has retained Objective Capital Partners, LLC as its exclusive advisor to assist the company in exploring such alternatives. These alternatives, all of which are focused on building upon the Company’s strong foundation, could include selling, partnering or raising capital to continue growth and development in the business.
AVACEN is involved in research and development related to a unique Class II medical device, the AVACEN 100, that addresses unmet medical needs within the chronic pain market. The medical device is currently FDA-cleared as a heat therapy device for temporary relief of minor muscle and joint pain and stiffness; the temporary relief of joint pain associated with arthritis, muscle spasms, minor strains and sprains; muscular relaxation. The AVACEN 100 is covered by 3 U.S. patents and 7 International Patents including China, Australia, and 4 EU countries.
“The Company has determined that it is in the best interest of its shareholders to consider itself a possible acquisition target to a larger strategic company that possesses the necessary resources to secure insurance reimbursement for medical device product, conduct additional clinical studies to expand its approved use to other diseases and meet the worldwide demand for the Company’s product”, stated Thomas G. Muehlbauer, CEO of AVACEN. “The Company believes that this is the most advantageous path to secure the large market sales potential for its multiple fields of use while the remaining term of its intellectual property are at their peak.”
Channing Hamlet, Managing Director, with Objective Capital Partners added, “We are excited to work with Tom and his Board to unlock value for shareholders and identify a strategic partner that can enable the Company to realize its full potential. “
The Company’s independent directors will oversee this process so that management can continue to execute the Company’s ongoing initiatives and bolster the position of its brand.
The Company stated that there can be no assurance that the exploration of strategic alternatives will result in any transaction being entered into or consummated. The Company has not set a timetable for completion of this process unless or until the Board has approved a definitive course of action.
Please direct any inquiries to Michael Kim, Vice President, Objective Capital Partners at (858) 264-6580 or [email protected].
AVACEN is the FDA registered manufacturer of the AVACEN 19090. The Company was founded in 2009 and is headquartered in San Diego, CA. The Company can be contacted at (888) 4-AVACEN or [email protected]
About Objective Capital Partners
Objective Capital Partners (www.objectiveibv.com) is a leading M&A investment banking firm whose Principals have collectively engaged in more than 500 successful transactions serving the transaction needs of growth stage and mid-size companies. The executive team has a unique combination of investment banking, private equity, and business ownership experience that enables Objective Capital Partners to provide large enterprise caliber investment banking services to companies with annual revenues up to $500 million. Services include sale transactions, equity and debt capital raises and comprehensive advisory services. The firm uses a proprietary process to work to achieve maximum company valuation, premium pricing, and high client satisfaction rates post-sale. The firm’s industry expertise includes: life sciences, business services, software, hardware technology, consumer products, technology enabled services, healthcare services, energy, biotech and specialized manufacturing.