Asensus Surgical ( NYSE: ASXC ) said Tuesday it expects to file for bankruptcy if its shareholders don’t vote in favor of a proposed takeover by a subsidiary of Karl Storz. Asensus said a majority of shareholders must vote in favor of the merger for it to be approved. So far, the company has received proxies for approximately 55% of its outstanding shares, with over 80% voting in favor of the deal.
“While we understand the offer price may not meet everyone's expectations, it does provide a definite return in a challenging financial environment. If the merger is not approved, we expect to seek bankruptcy protection,” said Asensus CEO Anthony Fernando in a statement . A shareholders meeting for the merger proposal was recently adjourned to Aug.
20. Karl Storz has offered $0.35 per share, which Asensus admitted was “lower than historical valuations.
” Asensus said it explored various alternatives prior to accepting the offer, but no other potential party indicated interest in conducting a transaction at a higher price. Asensus and Karl Storz announced the merger deal in June . Independent proxy advisory firms ISS and Glass Lewis have recommended that shareholders vote for the merger, the company added.
Asensus also released its Q2 earnings report on Tuesday. The company had cash and equivalents of approximately $7.8M as of June 30.
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