Archive for May 14th, 2016

The Gerbsman Partners and Palmaz Scientific teams would like to thank you for your continued interest in bidding on the Assets and Intellectual Property of Palmaz Scientific (“Palmaz”). As the Gerbsman Partners team has been communicating, the San Antonio Bankruptcy Court must approve the “Bidding Procedures” for the sale of the Assets and Intellectual Property of Palmaz.

On Thursday, May 5, 2016, a hearing was held in the San Antonio Bankruptcy Court regarding Palmaz Scientific and the “Bidding Procedures”, to include qualification of a “stalking horse bid”.

The “Bidding Procedures for the sale of the Assets and Intellectual Property” of Palmaz Scientific was presented and legal counsel for Palmaz Scientific expects formal approval by the Court of the “Bidding Procedures” on May 20th. Since, the Court has not approved the final “Bidding Procedures”, they are subject to change, however the dates and information represented in this email are a good estimate.

Please see the email below from William B. Kingman, Esq. counsel for Palmaz Scientific regarding the relevant information. Of note are:

1. Vactronix, a company consisting of some of the original investors in Palmaz Scientific, will be the stalking horse bidder with a bid of $ 22.6 million (which will be in the form of some cash, with the remaining balance being a credit bid)

2. The deadline for competing bids will be June 8th. In order to participate in the auction, initial competing bids must be all cash and must be for at least $23.1mm. Furthermore, all competing bidders must, when making their bids, deposit $250k in earnest money into a Trust account to be provided. Such bidders will also be required to evidence their financial ability to consummate the transaction in the event that they are the winning bidder.

3. The auction will occur on June 10th, likely at the San Antonio bankruptcy courthouse.

Vactronix will have the ability to withdraw its stalking horse bid on or before June 3rd if it determines that it will be required to pay more than $22.6mm to satisfy all secured, unsecured and administrative claims in the bankruptcy proceeding. If it does withdraw its bid, we will still have an auction on June 10th, just one w/o a stalking horse.

I will follow up with you to discuss and qualify your continued interest in bidding/over bidding on the Assets and Intellectual Property of Palmaz and make arrangements for additional due diligence, if appropriate.

Bill Kingman has informed me that the Asset Purchase Agreement (“APA”) is being finalized and should be available later this week.

Thank you for your continued interest in Palmaz

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