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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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): June 12, 1996
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BioSepra Inc.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
0-23678 04-3216867
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(Commission File Number) (IRS Employer Identification No.)
111 Locke Drive, Marlborough, Massachusetts 01752
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (508) 481-6802
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140 Locke Drive, Marlborough, Massachusetts 01752
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(Former name or former address, if changed since last report)
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Item 5. OTHER EVENTS
------
On March 29, 1996, BioSepra Inc. ("BioSepra") issued a Convertible
Subordinated Note due March 2000 (the "Note") to Sepracor Inc.
("Sepracor") providing for the borrowing by BioSepra from Sepracor of
up to $5,500,000 (the "Loans"). The Loans bear interest at 7% and are
repayable in March 2000. The Loans, including any accrued interest
thereon, are convertible into shares of BioSepra's Common Stock, $.01
par value ("Common Stock"), at the option of Sepracor at any time prior
to repayment. Since March 29, 1996, an aggregate of $5,500,000 was
borrowed under the Note. On June 10, 1996, Sepracor converted the
outstanding principal, plus accrued interest, of the Loans into an
aggregate of 1,369,788 shares of BioSepra's Common Stock. As a result
of the conversion of the Note, Sepracor's ownership of BioSepra's
outstanding Common Stock increased from approximately 58% to
approximately 64%.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
------ AND EXHIBITS
(a) None.
(b) Unaudited Pro Forma Consolidated Financial Statement.
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The following unaudited Pro Forma consolidated balance sheet of
BioSepra as of April 30, 1996 gives effect to the conversion by
Sepracor of the Note into BioSepra Common Stock at the rate of $4.05
per share. For presentation purposes the Pro Forma consolidated
balance sheet assumes the conversion took place on April 30, 1996.
This Pro Forma consolidated balance sheet should be read in
conjunction with the historical consolidated financial statements and
notes of BioSepra. In the opinion of BioSepra's management, all
adjustments necessary for a fair presentation have been made. The
unaudited Pro Forma consolidated balance sheet does not purport to
represent what BioSepra's financial position would actually have been
had the transaction in fact occurred on the date indicated above, or
to project BioSepra's financial position for any future period.
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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.
BIOSEPRA INC.
(Registrant)
Date: June 12, 1996 By: /s/ Jean-Marie Vogel
-----------------------------
Jean-Marie Vogel
President and Chief Executive
Officer
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EXHIBIT INDEX
(99.1) Unaudited Pro Forma Consolidated Balance Sheet dated
April 30, 1996
Notes to Unaudited Pro Forma Consolidated Balance Sheet
dated April 30, 1996
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<PAGE> 1
BIOSEPRA INC.
<TABLE>
<CAPTION>
BIOSEPRA INC.
PRO FORMA CONSOLIDATED BALANCE SHEET
APRIL 30, 1996
(000'S)
(UNAUDITED)
Historical Pro Forma Pro Forma
BioSepra Adjustments Combined
-------- ----------- --------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 3,820 $ 2,000 (1) $ 5,820
Accounts receivable 2,239 2,239
Inventories 3,286 3,286
Prepaid and other current assets 521 521
-------- ------- --------
Total current assets 9,866 2,000 11,866
Property and equipment, net 2,281 2,281
Goodwill, net 10,321 10,321
Other assets 710 710
-------- ------- --------
Total assets $ 23,178 $ 2,000 $ 25,178
======== ======= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,502 $ 1,502
Related parties payable 668 (20)(2) 648
Accrued expenses 1,661 1,661
Accrued restructuring 95 95
Deferred revenue 4,100 4,100
Notes payable, current portion of long-term debt
and capital lease obligations 445 445
Promissory note payable to related party-Short-Term 28 28
-------- ------- --------
Total current liabilities 8,499 (20) 8,479
Convertible subordinated note payable to related party 3,500 2,000 (1) -
20 (2)
(5,520)(3)
Long-term debt and capital lease obligations 1,121 1,121
Promissory note payable to related party-Long-Term 316 316
-------- ------- --------
Total liabilities 13,436 (3,520) 9,916
Stockholders' equity:
Common stock 70 14 (3) 84
Additional paid-in capital 35,090 5,506 (3) 40,596
Unearned compensation (612) (612)
Accumulated deficit (24,944) (24,944)
Cumulative translation adjustment 138 138
-------- ------- --------
Total stockholders' equity 9,742 5,520 15,262
-------- ------- --------
Total liabilities and stockholders' equity $ 23,178 $ 2,000 $ 25,178
======== ======= ========
</TABLE>
The accompanying footnotes are an integral part of the pro forma
consolidated balance sheet.
<PAGE> 2
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED
BALANCE SHEET
The pro forma consolidated balance sheet reflects the conversion by Sepracor of
the Note into BioSepra common stock at the rate of $4.05 per share as if the
transaction took place as of April 30, 1996, as follows:
(1) Reflects draw-down of additional $2,000,000 by BioSepra available
under the Note agreement with Sepracor.
(2) Represents accrued interest for the month of April. The Note bears
interst at 7%. The interest calculation is based on prinicpal of
$3,500,000 outstanding for the one month period ending April 30, 1996.
(3) Reflects conversion of the Note's principal and interest into common
stock of BioSepra at the rate of 4.05 per share.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> APR-30-1996
<EXCHANGE-RATE> 1
<CASH> 3,820,000
<SECURITIES> 0
<RECEIVABLES> 2,239,000
<ALLOWANCES> 0
<INVENTORY> 3,286,000
<CURRENT-ASSETS> 9,866,000
<PP&E> 2,281,000
<DEPRECIATION> 0
<TOTAL-ASSETS> 23,178,000
<CURRENT-LIABILITIES> 8,499,000
<BONDS> 4,937,000
<COMMON> 70,000
0
0
<OTHER-SE> 9,672,000
<TOTAL-LIABILITY-AND-EQUITY> 23,178,000
<SALES> 3,972,000
<TOTAL-REVENUES> 3,972,000
<CGS> 1,552,000
<TOTAL-COSTS> 1,552,000
<OTHER-EXPENSES> 3,470,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 112,000
<INCOME-PRETAX> (1,146,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,146,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,146,000)
<EPS-PRIMARY> (.16)
<EPS-DILUTED> 0
</TABLE>
