Advanced NMR calls off AMS merger
Advanced NMR announced last week that it has canceled its proposedmerger with Advanced Mammography Systems, the breast MRI developerof which it owns a majority interest.Advanced NMR, of Wilmington, MA, had originally planned to bringAMS under its wing
Advanced NMR announced last week that it has canceled its proposedmerger with Advanced Mammography Systems, the breast MRI developerof which it owns a majority interest.
Advanced NMR, of Wilmington, MA, had originally planned to bringAMS under its wing because of capitalization issues at the subsidiary.AMS recently completed a private placement of $3 million worthof convertible debentures, however, enabling the unit to remainindependent. Proceeds from the debenture issue will be used toaccelerate the completion of product development for AdvancedMammography Systems' Aurora dedicated breast MRI scanner and tofund a global product launch of the machine.
The merger cancellation renders moot a class action shareholderlawsuit filed against Advanced NMR earlier this year seeking tostop the merger (SCAN 2/28/96). Advanced NMR will continue toown 61% of AMS.
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