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CDIK - R/S PR - Coronado Industries Announces Plans for Equity Restructuring in Advance of Recapitalization
Thursday , February 09, 2006 16:00 ET
FOUNTAIN HILLS, Ariz., Feb 09, 2006 (BUSINESS WIRE) -- Coronado Industries Inc. (OTCBB: CDIK) (www.coronadoindustries.com), the manufacturers of unique proprietary pneumatic devices for the non-invasive treatment of glaucoma through its wholly owned subsidiary, Ophthalmic International, (www.ophthalmicinternational.com) has announced restructuring plans for the company's publicly traded stock in order to gain access to the necessary capital to accelerate the introduction of their patented PNT device into an increasing number of markets throughout the world.
In describing the move Gary Smith, president of Coronado Industries, said that for the past 10 years Coronado Industries has been a development stage company, focused on the development of Pnuematic Trabeculoplasty, a non-invasive method for the treatment of primary open-angle glaucoma and ocular hypertension. During this time, the company moved purposefully toward introducing its patented technology into major markets in Europe and beyond. However, as a direct result of financing the company's operations over the past 10 years the company's common stock had undergone significant dilution. "While we view this as an unfortunate occurrence, it has enabled us to advance to the point we are at today. Additionally, we have, today, very little debt which is rare for a start-up company in the medical device marketplace," Mr. Smith said.
Mr. Smith went on to say that the company was now successfully marketing in Europe and now with an agreement with Beijing Vision in place, the company had expanded into Asia. "We expect additional contracts to be signed in the very near future and continue to move forward purposefully with our registration activities in the United States and in Canada."
Mr. Smith said that as the company makes the transition from a development stage company to a manufacturer and distributor of medical product, it was time to put its financial house on a stronger footing. In order to reduce our total outstanding shares to a level more appropriate for the size of our company the board of directors has voted to reverse split the outstanding and authorized shares 10 to 1.
"We recognize that most shareholders think that a reverse split is a bad thing," said G. Richard Smith, Coronado's CEO. "In this case we feel that this move is both necessary and a positive step forward for the company."
"We are able to look forward to many positive developments. We expect approval on our final study protocol in the near future and are engaged in raising funds at this time as well as for our expansion into other global markets. The reverse split should broaden Coronado's investor base and may encourage greater levels of long-term institutional stock ownership and may improve the marketability of our common stock to a broader range of investors. Realignment of our outstanding common shares will make it easier to gain access to the working capital we require to expand and accelerate the introduction of PNT," said Mr. Smith.
Mr. Smith said that this move was long overdue and that in addition, in order to enhance the company's attractiveness to investors all back salaries have been taken off the books and Coronado officers and employees have returned over 100 million option shares.
Mr. Smith said that this reverse split should occur in approximately 10 days.
Coronado Industries, through its wholly owned subsidiary, Ophthalmic International, is focused on the development and commercialization of its patented procedure as a cost-effective alternative for the treatment of the most common types of glaucoma, which are open angle and pigmentary, as well as for the treatment of ocular hypertension.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the company's products, increased levels of competition for the company, new products and technological changes, the company's dependence on third-party suppliers, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.
SOURCE: Coronado Industries Inc.
Coronado Industries Inc. Bob Smith, 480-837-6810 (Investor Relations) or Marston Webb International Victor Webb/Madlene Olson, 212-684-6601 (Media)
Copyright Business Wire 2006
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