SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): March 6, 1998
Everest Medical Corporation
(Exact Name of Registrant as Specified in Its Charter)
Minnesota
(State or Other Jurisdiction of Incorporation)
0-18900 41-1454928
(Commission File Number) (I.R.S. Employer Identification Number)
13755 First Avenue North
Minneapolis, Minnesota 55441-5444
(Address of Principal Executive Offices) (Zip Code)
612-473-6262
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
On March 6, 1998, Everest Medical Corporation (the "Company") sold
411,765 shares of its Common Stock to Guidant Corporation ("Guidant") for
$700,000. The proceeds will be used for general corporate purposes. Under an
agreement between Guidant and the Company signed last year, the Company supplies
Guidant with versions of its proprietary bipolar instruments for the emerging
vascular and cardiovascular markets. See Item 7(b) for Balance Sheet as of
February 28, 1998, adjusted to include the sale of the shares to Guidant.
Item 7. Financial Statements and Exhibits.
(a) Financial statements: None.
(b) Pro forma financial information: See Balance Sheet as of
February 28, 1998 (as adjusted) and December 31, 1997
immediately following the signatures hereto.
(c) Exhibits: None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: March 10, 1998
EVEREST MEDICAL CORPORATION
By /s/ John L. Shannon
John L. Shannon, President, Chief
Executive Officer and Chairman
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EVEREST MEDICAL CORPORATION
BALANCE SHEET
<TABLE>
<CAPTION>
February 28, 1998 (1) December 31, 1997
Unaudited Note
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<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 812,471 $ 80,362
Accounts receivable, less allowances
(1998-$48,750;1997-$46,750) 1,354,403 1,563,066
Inventories 1,123,451 1,055,811
Prepaid insurance and deposits 132,746 99,528
------------ ------------
Total current assets 3,423,071 2,798,768
Equipment
Office and display equipment 405,938 387,919
Research and development equipment 188,224 188,224
Production equipment 1,227,668 1,191,576
------------ ------------
1,821,830 1,767,719
Less allowance for depreciation (1,514,561) (1,486,020)
------------ ------------
307,268 281,699
Patents, net of amortization
(1998 - $170,962; 1997 - $169,747 1,375 2,591
------------ ------------
Total assets $ 3,731,714 $ 3,083,058
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Customer advances $ 38,000 $ 38,000
Accounts payable 396,504 340,378
Accrued compensation and related taxes 187,177 202,915
Other accrued liabilities 75,145 93,777
Bank borrowings, short term -- --
Capital lease obligations, current portion 2,188 2,496
------------ ------------
Total current liabilities 699,014 677,566
Capital lease obligations, net of current portion -- --
Other long term liabilities -- --
Bank borrowings, long term 600,000 600,000
Shareholders' equity
Convertible preferred stock series A, ($.01 par
value, $2.50 liquidation value) 1,400,000
authorized; outstanding:
1998 - 632,937 shares; 1997 - 636,937 shares 1,551,717 1,551,717
Convertible preferred stock series B, ($.01 par
value, $2.75 liquidation value) 730,000
authorized; outstanding:
1998 - 637,273 shares; 1997 - 652,273 shares 1,545,313 1,545,313
Convertible preferred stock series C, ($.01 par
value, $2.75 liquidation value) authorized
and outstanding:
1998 - 410,906 shares; 1997 - 410,906 shares 1,002,832 1,002,832
Convertible preferred stock series D, ($.01 par
value, $2.875 liquidation value) authorized
and outstanding:
1998 - 471,500 shares; 1997 - 471,500 shares 1,205,807 1,205,808
Common stock, ($.01 par value) 11,987,594
authorized; outstanding:
1998 - 7,457,274; 1997 - 7,038,002 74,573 70,380
Additional paid-in capital 16,748,683 16,041,470
Retained deficit (19,696,225) (19,612,029)
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2,432,700 1,805,492
------------ ------------
Total liabilities and shareholders' equity $ 3,731,714 $ 3,083,058
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(1) Proforma to reflect issuance of 411,765 shares of Common Stock on March
6, 1998 in exchange for $700,000 of cash.
Note: The balance sheet at December 31, 1997 is derived from the audited
financial statements at that date.
