Baxano Surgical filed for Chapter 11 bankruptcy protection, according to a Triangle Business Journal report.
The company will sell its product lines — which includes the AxiaLIF family of products for single and two-level lumbar fusion, VEO lateral access and interbody fusion system, iO-Flex minimally invasive lumbar decompression system, iO-Tome facetectomy system and Vectre and Avatar posterior fixation systems — through a court-supervised auction process.
As early as September, the company began seeking strategic alternatives to the core business — minimally invasive spinal fusion products — and engaged Houlihan Lokey as its financial advisor. Even more recently, the company completed a subordinated convertible note of financing totaling $1.5 million to extend its cash runway. However, shares of Baxano dropped 65 percent to $0.06; that is six cents per share, according to the Triangle Business Journal report.
"We believe this is the best course of action for the company at this point in time and is in the best interests of all of our stakeholders," said Baxano President and CEO Ken Reali, according to the report. "As we move through this transaction process we will continue to focus on supporting our commercial business and the surgeons and hospitals that use our products."
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