Obtains $5 Million in Financing
Will Announce Second Quarter and First Half Results
ORANGEBURG, N.Y., Nov. 9, 2009 (GLOBE NEWSWIRE) -- Vision-Sciences, Inc., (Nasdaq:VSCI) ("Vision-Sciences" or the "Company") announced today the appointment of Mr. Warren Bielke, a director, as Interim Chief Executive Officer. Mr. Bielke replaces Mr. Ron Hadani who resigned as President, Chief Executive Officer and as a member of the Board of Directors of Vision-Sciences, effective immediately. Mr. Hadani resigned for personal reasons. The Board expressed gratitude to Mr. Hadani for his service to Vision-Sciences.
Mr. Bielke, a Vision-Sciences' director since 2005, has been actively engaged in managing the Company's sales and marketing efforts as a consultant since April 2009. "We are very pleased that Warren Bielke has agreed to serve as Interim CEO," said Mr. Lewis Pell, Chairman of the Board. "Warren's deep knowledge of Vision-Sciences and extensive experience in sales and marketing of advanced medical products will provide the leadership necessary to accelerate commercialization of our industry-leading technology during this transition period." Mr. Bielke previously served as the President of Pentax Precision Instruments Corp., a leading manufacturer of endoscopy equipment.
A special committee of the Board, composed of independent directors, has initiated the search for a new chief executive officer.
"The appointment of Mr. Bielke reflects the Board's determination to assist the Company in fully realizing its commercial potential," Mr. Pell added. I want to assure the shareholders of Vision-Sciences that the Company is committed to achieving its financial goals."
New Financing
Vision-Sciences also announced that it has entered into a Revolving Loan Agreement with Mr. Pell in which he has agreed to provide a revolving loan of up to $5.0 million dollars to the Company for working capital purposes. Amounts advanced under the Revolving Loan will bear interest at a rate of 7.5% per year. In connection with this agreement, the Company will issue to Mr. Pell a fully vested warrant to purchase up to 272,727 shares of Vision-Sciences' Common Stock (representing 7.5% warrant coverage), at an exercise price of $1.375 per share, and a second warrant to purchase up to an additional 378,788 shares of Vision-Sciences Common Stock (representing up to an additional 12.5% warrant coverage) at an exercise price of $1.65 per share. The number of shares into which the second warrant will vest is based on the percentage of the revolving loan that has been advanced.
Second Quarter and First Half Results Call Planned
Vision-Sciences will issue results for its second quarter and first half of fiscal 2010 ended September 30, 2009 on November 12, 2009 after the market closes. Vision-Sciences will host a conference call on November 13, 2009 at 8:30 am EST, during which Lewis Pell, Chairman, Warren Bielke, Interim Chief Executive Officer, and Katherine Wolf, Chief Financial Officer, will provide an update on the Company and discuss second quarter and first half results. The toll-free dial-in number for the call is 888.500.6973. Please dial in five minutes prior to the call to register. A recording of the call will be available through November 20, 2009. The toll free replay dial-in is 888.203.1112. The replay pass code is 3034974. The call may also be accessed via a live audio webcast available in the investor relations section of Vision-Sciences website at www.visionsciences.com. The audio webcast of the call will be archived and available for replay through the website.
About Vision-Sciences:
Vision-Sciences develops, manufactures and markets unique flexible endoscopic products for the urology, gastroenterology, pulmonology and ENT markets, utilizing its proprietary sterile disposable EndoSheath technology. The EndoSheath technology provides quick and efficient equipment turnover, and ensures the patient a contaminant-free endoscope insertion.
The Vision-Sciences, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3876
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Vision-Sciences or its management "believes," "expects," "allows," "anticipates," or other words or phrases of similar import. Similarly, statements in this release that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. Other risk factors are detailed in our most recent annual report and other filings with the SEC.
Vision Sciences(R), Slide-On(R), EndoSheath(R) and The Vision System (R) are registered trademarks owned by Vision-Sciences, Inc.
UPON REQUEST: Bios of Mr. Pell and Mr. Bielke are available