In a bid to continue operating beyond August, MRI contrast developer Epix Pharmaceuticals has engaged two investment banks to assist the firm in exploring strategic and financial alternatives.
These alternatives include a recapitalization, sale or disposition of one or more corporate assets, potential merger, and/or strategic business combination, according to the Lexington, MA-based firm. J.P. Morgan will assist the company in evaluating strategic alternatives, while Canaccord Adams will help Epix explore financing and capital structure alternatives.
In other developments, Epix said it has successfully completed an exchange offer of $96.8 million of debt for cash and equity. The company retired approximately 97% of its convertible senior notes for approximately $17.4 million in cash, 32.8 million shares of common stock, and 97,000 contingent value rights representing potential future payments upon certain events.
The company expects to be delisted from the Nasdaq Capital Market on or about May 13 due to a failure to comply with listing criteria. Epix said it intends for its common stock to be eligible for trading on the Over-the-Counter Bulletin Board.
Epix reported $3.7 million in first-quarter revenue, up from the $2.4 million booked in the first quarter of 2008. For the period (end-March 31), Epix had a net loss of $9.7 million, compared with a net loss of $13.7 million a year ago.
Related Reading
Epix to complete tender offer, May 5, 2009
Epix works to avoid bankruptcy, April 9, 2009
Lantheus buys Epix's MS-325 rights, April 7, 2009
Epix gets 'going concern' notice, March 26, 2009
Epix posts mixed Q4, cuts staff 50%, March 12, 2009
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