BSD Medical Corp. of Salt Lake City, a company developing, manufacturing and marketing hyperthermia systems used in the treatment of cancerous tumors, has acquired UltraThermics Inc. of Redmond, Wash., a company involved in the technology of ultrasound hyperthermia.
Alan L. Himber, BSD chairman of the board, said BSD acquired UltraThermics in exchange for 800,000 newly issued "restricted" shares of BSD common stock. In a separate transaction, two Seattle investors, Jack A. Benaroya and Samuel N. Stroum, purchased from BSD for $500,000 cash 250,000 "restricted" shares of BSD common stock for $2 per share. Himber said in five months, BSD has received $3.5 million in cash as a result of private placements of its equity securities.He said the company's balance sheet remains totally free of bank debt. In accordance with BSD's conservative financial policies, the acquisition of UltraThermics will result in large, non-recurring "paper" losses for BSD in the quarter ending Aug 31, 1988, as certain "writeoffs" take place, Himber said.
Himber said BSD holds 15 patents and is the pre-eminent company in the electromagnetic hyperthermia field. "When we decided to enter the field of ultrasound hyperthermia in a major way, the obvious choice was to build upon the superb foundation created by Ultrathermics," Himber said.