Xtent, the Menlo Park development-stage medical device company whose board decided to throw in the towel and liquidate its assets, postponed a special meeting it had called to obtain approval from shareholders over its “plan of dissolution”.
The meeting, which was to take place on Thursday, July 9, has been rescheduled for Aug. 3 to give the company more time to negotiate with the two potential buyers out of 11 that had been contacted by the company and its financial adviser, Piper Jaffray & Co.
Eight of the 11 parties contacted expressed no interest in a deal with Xtent. One made an offer whose terms the board believed “would not maximize the value of (Xtent’s) assets.” Negotiations with the two remaining parties were described as being in the “VERY EARLY STAGES” in a paragraph at the end of the today’s filing printed upper case, which we took as a warning to any stock traders out there.
“WE CAN PROVIDE NO ASSURANCE THAT THESE DISCUSSIONS WILL RESULT IN AGREEMENT ON THE TERMS AND CONDITIONS OF A TRANSACTION WITH EITHER OF THESE TWO PARTIES OR ANY OTHER PARTY. EVEN IF THE TERMS AND CONDITIONS OF A TRANSACTION WERE AGREED TO, CONSUMMATION OF THE TRANSACTION WOULD BE SUBJECT TO ONE OR MORE RISKS RELATED TO, AMONG OTHERS, THE DUE DILIGENCE EFFORTS UNDERTAKEN BY EITHER PARTY, THE ABILITY TO OBTAIN ADEQUATE FINANCING, THE NEED FOR DOMESTIC AND FOREIGN REGULATORY APPROVAL AND APPROVAL BY THE BOARD AND STOCKHOLDERS OF EACH PARTY.”
The company also announced that Dr. Phillipe Marco, its vice President of quality assurance, was no longer employed by the company as of July 1, and was given the $131,700 retention payment promised him in January when the company fired 115 employees, or 94 percent of its staff.
Retention payments were offered at that time to five of its top executives in return for their agreement to stay through various periods as the company’s board figured out what to do.