Brian Marckx, CFA
Financing/Development Deals
Vicor Technologies’ (VCRT) spate of disappointing news over the last few months was quelled last week when the company filed back-to-back 8-K’s announcing a new financing deal and a licensing/development agreement.
We cover Vicor with an Outperform rating.
Financing Deal
With their cash balance dwindling, Vicor has been running on fumes. Their cash tank may soon get a bit of a refill, however. In a July 26th 8-K filing the company notes that it has entered into a financing deal with Centaurian Fund whereby Centaurian will be obligated to purchase up to $10MM (although this will be limited to $2.1MM initially) in Vicor common stock over a three year period. Vicor filed a registration statement with the SEC covering up to 15.1MM shares (~$2.1MM worth) which must become effective before Vicor can begin selling shares to Centaurian. The arrangement would allow Vicor to make cash draws once every 7 days. The price per share that Centaurian will pay includes a 7% discount to market price.
Vicor notes in the filing that they expect to limit themselves to $2.1MM and may file a registration statement for the remainder ($7.9MM which represents ~72MM shares at the current share market price) if their share price rises.
ZOLL Medical Agreement
More good news came across the wire last week when Vicor announced a “licensing and development agreement” with ZOLL Medical (NASDAQ:ZOLL). The agreement allows Zoll to use Vicor’s PD2i algorithm (the brains behind the company’s PD2i Analyzer) in Zoll’s existing and future products. Zoll is a heavyweight in resuscitation devices and makes the only wearable automatic defibrillator, called LifeVest.
While the 8-K was light on specific terms of the deal, it is clearly a very positive sign that a company of Zoll’s caliber within resuscitation is interested in PD2i.
For a free copy of the full research report, please email scr@zacks.com with VCRT as the subject.
Follow Zacks Small Cap Research on Twitter at Twitter.com/ZacksSmallCap
VICOR TECHNOLOG (VCRT): Free Stock Analysis Report
Zacks Investment Research
