Think Media Communications
FOR IMMEDIATE RELEASE
Angel Medical Systems, Inc. Files for Chapter 11 Protection
Operations Remain Ongoing During Process
Eatontown, NEW JERSEY, December 31, 2018 – Angel Medical Systems, Inc. (“the Company”), a
medical device company, today announced that it has filed a voluntary petition for
reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware (the “Court”) to seek confirmation of its pre-packaged plan of
reorganization. After considering its range of alternatives, this action was taken to restructure
the Company’s balance sheet and best position the Company to bring to market Angel Medical
Systems’ The Guardian® implantable cardiac monitor and alerting system. The pre-packaged
plan has the support of the Company’s senior creditors.
The Company has obtained commitments of at least $2,000,000 in debtor-in-possession (DIP)
financing. Subject to Court approval, the DIP financing will provide the Company with sufficient
liquidity to maintain business operations during its Chapter 11 case. Under the pre-packaged
plan, the Company’s existing debt will be converted into equity in the reorganized Company.
The Company will emerge from bankruptcy without any long-term debt obligations, and it will
raise additional funds through an offering of equity in the reorganized Company that should
provide sufficient liquidity for the Company to reach cash flow positive.
Dr. David R. Fischell, Angel Medical Systems’ Chief Executive Officer, said, “Operations will
remain ongoing during the reorganization process and manufacturing efforts will continue to
move forward to successfully commercialize The Guardian®. With a stronger balance sheet and
greater financial flexibility to grow, we look forward to serving patients around the world.”
“We have carefully reviewed the options for the Company, and this is the right step. It is the
Company’s best path forward. We feel confident about what the future holds for Angel Medical
Systems and The Guardian®,” said Dave Keenan, Angel Medical Systems’ Chief Operating
Angel Medical Systems has also filed a number of “first day” motions with the Court to facilitate
a smooth transition into Chapter 11, and it will continue to pay vendors and suppliers in the
course of business with respect to its continuing operations.
About Angel Medical Systems’ The Guardian® System
Angel Medical Systems’ The Guardian® System received pre-market approval by the U.S. Food
and Drug Administration (FDA) in April 2018. It is an implantable cardiac monitor with patient
alerting for patients who have had prior Acute Coronary Syndromes (ACS), including myocardial
infarctions (heart attacks) or unstable angina and who remain at high risk for recurrent ACS
events. The Guardian® System is an adjunct to patient recognized symptoms by detecting
potential ongoing ACS events, characterized by sustained ST segment changes and alerting the
patient to seek medical attention for those events. Approval of Angel Medical Systems’ The
Guardian® System by the U.S. FDA was based on preclinical and clinical data, including data
derived from the ALERTS Clinical Study that began in 2009.
About Angel Medical Systems, Inc.
Angel Medical Systems, Inc. was founded in 2001 by Drs. Robert, Tim and David Fischell, active
serial entrepreneurs and inventors of medical devices. In 1999, the company filed its first of
more than 50 issued US patents relating to detecting cardiac events and patient alerting, with
the Company’s first human implant occurring in 2005.
Forward Looking Statements
Statements made in this press release that look forward in time or that express beliefs,
expectations or hopes regarding future occurrences or anticipated outcomes or benefits are
forward- looking statements. A number of risks and uncertainties, such as risks related to
product development and commercialization efforts, results of clinical trials, ultimate clinical
outcomes and benefit of the Company’s products to patients, market and physician acceptance
of the Company’s products, intellectual property protection and competitive product offerings,
could cause actual events to differ from the expectations indicated in these forward-looking
statements. You are cautioned not to put any undue reliance on any forward-looking statement.
This press release is neither an offer to sell nor a solicitation of an offer to purchase any
particular securities. Any such offer or solicitation will be made only pursuant to definitive legal
agreements prepared specifically for such purpose. An investment in the Company’s securities
entails significant risks and is suitable only for sophisticated investors who can afford a loss of
their entire investment; no assurance can be given that investment objectives will be achieved. In considering the performance information contained herein, you should bear in
mind that past performance is not necessarily indicative of future results; there can be no
assurance that the Company will achieve comparable results or that any projected returns will
be met. The Company does not assume any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events, or otherwise.
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