Victhom announces completion of joint venture agreement with Otto Bock for Neurobionix activities
QUEBEC, June 18 /CNW Telbec/ - Following the announcement on April 30,
2009, of the execution of a partnership agreement between Victhom Human
Bionics Inc. ("Victhom", TSX: VHB) and Otto Bock HealthCare GmbH ("Otto
Bock"), Victhom announced today the completion of the transaction contemplated
by the partnership agreement and the approval by its shareholders and
debenture holders of the concurrent restructuring of its outstanding
convertible debentures by way of plan of arrangement.
On June 16, 2009, the arrangement resolution was approved by 98% of
Victhom's shareholders present or represented by proxy at the annual and
special meeting of shareholders, and by 97% of the debenture holders at the
debenture holders' meeting held earlier that day.
On June 17, 2009, the Québec Superior Court issued its final order
approving the implementation of the plan of arrangement providing inter alia
for the consolidation of Victhom's common shares on a 10 for 1 basis and the
conversion the 7% convertible debentures maturing in March 2010 in the capital
amount of CAN$ 18,354,000 into a newly created class of preferred shares.
The 10:1 consolidation will take effect as of today but the common shares
of the Corporation will transact on a post-consolidation basis on the Toronto
Stock Exchange on June 23, 2009. It is expected that share certificates
representing the preferred shares and the newly consolidated common shares
will be made available to debenture holders and shareholders shortly.
As part of the arrangement and pursuant to the partnership agreement,
Victhom has transferred all of the assets and liabilities of its Neurobionix
division to the newly created general partnership, "Neurostream Technologies
General Partnership" ("Neurostream Technologies"), concurrent with an initial
equity investment of CAN$ 12.5 million in Neurostream Technologies by Otto
Bock. At closing, Neurostream Technologies is owned 55.6% by Otto Bock and
44.4% by Victhom. The partnership agreement also provides for additional
contributions by Otto Bock of CAN$ 17.5 million, totaling a contribution of
CAN$ 30 million over the next 2 1/2 years to be mainly used to bring to market
the Neurostep(R) System for the treatment of gait disorders but also to
develop neuromodulation products in other indications such as sleep apnea and
epilepsy.
Besides, the Founder and Chief Operating Officer of Victhom's Biotronix
division, Mr. Stéphane Bédard, has announced that he would be leaving the
Corporation to pursue new projects. "I am leaving with a feeling of
accomplishment. My dream to create the first bionic leg in the world that
would allow amputees to regain some autonomy in regard of their mobility has
now come true with the launch of the Power Knee II. I am very proud of that.
Having founded Victhom ten years ago, I now wish to pass the torch and to take
on new projects. I am leaving confident in Victhom's future, since the
Corporation today has the necessary support and resources to pursue its
development successfully. I want to thank all the members of Victhom's team,
and particularly all the scientists who have been working on the development
of the Power Knee and have put their confidence in the scientific direction I
have established, as well as the shareholders of the Corporation for their
unfailing support throughout those years".
Following Mr. Bédard's departure, the management of the Victhom Bionized
subsidiary will be taken over by Mr. Normand Rivard. "On behalf of Victhom, I
want to acknowledge Stéphane's remarkable work during all those years. Victhom
came to life thanks to his insight, talent and determination and the
Corporation could never have achieved this level of development without his
valuable contribution. We would like to wish the best success to Stéphane",
insisted Mr. Rivard. As for the Chairman of the board of Directors, Mr. Daniel
Johnson, he stressed the admiration of the board for Mr. Bédard's achievements
and the hallmark he leaves in Quebec's world of technology: "The members of
the board all acknowledge Stéphane's continued involvement and deep motivation
for people who hoped to regain some mobility and well-being through the
development of the device he had designed, and he is to be commended for
this".
Furthermore, the board of Victhom has appointed Mr. Normand Rivard
President and Chief Executive Officer of the Corporation and confirmed that
Mrs. Karine Tendland will still be acting as Director of Finance, while
performing the functions of Chief Financial Officer for regulatory purposes.
For the Chairman of the board, Mr. Daniel Johnson, "Throughout his acting
appointment, Normand Rivard took over the role of Chief Executive Officer, and
this during a crucial time for the development of the Corporation. Therefore,
it is important to confirm him in his position, while ongoing partnerships
point to a new future for Victhom".
About Victhom
Victhom discovers, develops and manufactures bionic devices involved in
the treatment of a variety of physical and physiological dysfunctions.
Victhom's Neurobionix division focuses on the development and
commercialization of technologies and products involving implantable devices
that feature neurosensing and neurostimulation components, integrated with
artificial intelligence. Victhom's Biotronix division develops biomechatronic
products to support or replace peripheral limbs in what is known as the
orthotics and prosthetics market.
FORWARD-LOOKING STATEMENTS
Some of the statements made herein may constitute forward-looking
statements. These statements relate to future events or our future financial
performance and involve known and unknown risks, uncertainties and other
factors that may cause Victhom's actual results, performance or achievements
to be materially different from those expressed or implied by any of Victhom's
statements. Actual events or results may differ materially. We disclaim any
intention, and assume no obligation, to update these forward-looking
statements.
For further information: Normand Rivard, President and Chief Executive
Officer, Victhom Human Bionics Inc., (418) 872-5665, Fax: (418) 864-7034,
normand.rivard@victhom.com; www.victhom.com