TransEnterix modifies AutoLap sale

TransEnterix (NYSE:TRXC) said yesterday that it agreed to amend a previously announced sale agreement with Great Belief […]

TransEnterix (NYSE:TRXC) said yesterday that it agreed to amend a previously announced sale agreement with Great Belief International for the AutoLap system.
On July 10, Research Triangle Park, N.C.-based TransEnterix announced that it dealt the AutoLap assets it had acquired in October 2018 along with Medical Surgery Technologies to Great Belief International for $47 million.
This week, TransEnterix entered into an amended and restated system sale agreement to restructure the sale of the AutoLap assets. The AutoLap system is an image-based scope positioning system for laparoscopic procedures.
Under the agreement, TransEnterix sold the AutoLap system and its related assets to GBI for $17 million and will enter into a cross-license agreement with GBI to retain rights to use AutoLap-related intellectual property, as well as to non-exclusively license additional intellectual property to GBI.
The amendment removes the obligation for GBI to make a $30 million equity investment in TransEnterix, which was part of the initial agreement made in July, according to an SEC filing. Additionally, TransEnterix said it enlisted J.P Morgan to evaluate strategic alternatives as it shifts its operational focus and implements a plan to reduce operating expenses.
TransEnterix posted Q2 losses of $20.1 million, or -10¢ per share, on sales of $3.64 million for the three months ended June 30, 2019. Last month, the company announced that it priced a public offering of 28 million shares of its common stock for gross proceeds of approximately $20.3 million.
“We are pleased to have agreed with GBIL to amend the AutoLap transaction, which is expected to provide the company with $17 million,” president & CEO Todd Pope said in prepared remarks. “We are implementing a plan that will refocus our resources on the continued global market development and commercialization of our current platform and development of our next-generation Senhance features and related instruments while reducing our overall operating expenses. In parallel, the board of directors and management team believe that this is an appropriate time to evaluate strategic alternatives to assess how best to maximize value for our stockholders.”
TransEnterix also announced that chief financial officer Joseph Slattery will retire from his position on December 31. Shares of TRXC were up 6.2% at 46¢ per share in early-morning trading today.
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