Cardo Medical, Inc. (OTCBB:CDOM), an orthopedic medical device company based in Los Angeles, California, its wholly-owned subsidiary, Cardo Medical, LLC (Cardo Medical, Inc. and Cardo Medical, LLC are collectively referred to as "Cardo"), and Arthrex, Inc. ("Arthrex"), a leading provider of sports medicine product development and educational services for orthopedic surgeons based in Naples, Florida, announced today that they signed an asset purchase agreement (the "Asset Purchase Agreement") dated as of January 24, 2011 to sell all of Cardo's joint arthroplasty division, which comprise all of its hip and knee assets, to Arthrex. Cardo will file a Current Report on Form 8-K with the Securities and Exchange Commission within the next four business days.
Cardo plans to continue as a public company with its shares of common stock continuing to trade on the OTC Bulletin Board. Cardo is continuing to explore other strategic alternatives for its Spine division.
Cardo's and Arthrex's Board of Directors have approved and adopted the Asset Purchase Agreement and the transaction contemplated thereby. A majority of Cardo's stockholders have approved and adopted the Asset Purchase Agreement and the transactions contemplated thereby. Cardo will mail to its stockholders an information statement describing the terms of the written consent and the asset sale transaction, which mailing will occur only after the information statement has been filed and cleared with the SEC staff. The closing of the asset sale transaction will be subject to certain closing conditions, including that at least 20 calendar days have passed since Cardo mailed the definitive information statement to its stockholders.
Dr. Andrew Brooks commented, "Arthrex is a global leader in sports medicine which stands at the pinnacle of innovation for our industry. We look forward to seeing Cardo's innovative arthroplasty products introduced to surgeons around the world through the extensive global distribution network Arthrex has built."
Reinhold Schmieding, Founder and Chief Executive Officer of Arthrex, commented, "The reconstructive joint products developed by the talented Cardo Medical team will be an exciting addition to our existing sports medicine portfolio. We are thrilled to be enhancing our own capabilities for expanding the continuum of treatment for the orthopedic and sports medicine patient."
Inverness Advisors, a division of KEMA Partners LLC, acted as exclusive financial advisor to Cardo Medical in this transaction.
SOURCE Cardo Medical, Inc.