VCR - Ventracor Limited

[oldblue]

One thing that bothers me is the CEOs renumeration is a fair chunk of the value of the company - I think his salary is out of proportion to the market value of the company - they should look at least basing his salary on the SP
e.g options

A nice thought but it just doesn't happen that way with public companies and anyway even CEO's have commitments that have to be met by a cash salary, just like the rest of us!
It's only the Bill Gates and Warren Buffetts of this world who can afford to pay themselves the token $1 pa salary!

 

[peteai]

A nice thought but it just doesn't happen that way with public companies and anyway even CEO's have commitments that have to be met by a cash salary, just like the rest of us!
It's only the Bill Gates and Warren Buffetts of this world who can afford to pay themselves the token $1 pa salary!

I wasn't suggesting $1 pa salary just something more appropriate to the market value of the company - is he on $2.5 mill for a company worth $40 Mil

Something less than $1million p.a would be appropriate and hopefully enough to meet his commitments

 

[WCA]

So the next capital raising begins.

Theres no reason to suspect it won't be successful. The company is gathering milestones.

I've heard $0.38 Share Price after a successful capital raising. Seems reasonable.

Any thoughts.

 

[WCA]

So no capital raised.

Most disappointing. Most annoying.

Very short sighted shareholders. Rather see there investments fall to nothing than invest just a little bit more in what might still prove to be valuable technology, only owned by someone else.

 

[spottygoose]

So the next capital raising begins.

Theres no reason to suspect it won't be successful. The company is gathering milestones.

I've heard $0.38 Share Price after a successful capital raising. Seems reasonable.

Any thoughts.

There were plenty of reasons to suspect it wouldn't be successful and you can't lay the blame at the feet of the shareholders. Most shareholders would be happy to support a company that earned that support......

 

[spottygoose]

Darling of health Ventracor losing heart on funds

Rebecca Urban | December 12, 2008
Article from: The Australian

VENTRACOR, a former darling of the healthcare sector, has all but raised the white flag, after shareholders shunned its last-ditch fund-raising effort.

However, instead of calling in administrators -- as chairman John Ward warned he would do at the recent annual meeting in Brisbane -- Ventracor's chief executive Peter Crosby and financial officer Graeme Fallett have packed their bags and flown to the US to find a buyer for all or part of the group.

"Subscriptions in the share purchase plan and placement did not achieve the goal ... to fund the company's operations until June 30, 2009," the heart device maker announced to the securities exchange yesterday.

"The company is open to opportunities including investment, acquisition, merger or any other structure that maximises shareholder value."

While hindsight is a powerful thing, Ventracor's long-suffering shareholders could be excused for wondering why this course of action wasn't pursued before the company started running out of money.

Ventracor, which has won a swag of gongs for its life-saving heart device, has already been forced to cut spending and staff are being asked to take any annual leave they have owing.

No doubt Ventracor boss Peter Crosby is doing his bit too. We assume the company booked him a business class ticket to America this time -- or even economy -- rather than first class, as has been the case in the past.

Crosby has been paid a total $3.8 million during the 2 1/2 years he's been running the show, and during that time the share price has fallen 95 per cent.
Snoops report that he's already cleared out his office at the company's Chatswood headquarters, including the framed photo of his family's impressive home in France (see www.marthon.org).

Having sold a large chunk of his shares earlier this year, Crosby's employment contract was recently renewed by the board, which counts Babcock & Brown's Elizabeth Nosworthy as a director.

In the event that his position is made redundant, he will receive a payout equal to a year's salary

 

[Knobby22]

A mistake has been made (refer below)

RIP Ventracor.

Tombstone reads - promised much but undercapitalised and couldn't compete against more financially secure foreign firms.

--------------------------------------------------------------------
Voluntary Field Safety Notice on LVA4 VentrAssist LVAD
Sydney AUSTRALIA 10 February 2009:
Ventracor Limited (ASX:VCR) reported today that it has issued an voluntary Urgent Field Safety Notice on the Model LVA4 VentrAssist ® Left Ventricular Assist Device (LVAD), catalogue number VA166. There have been 188 patients implanted worldwide with the VentrAssist LVAD Model LVA4, and 123 patients are still ongoing.

The Field Safety Notice does not affect other products such as the Model LVA3 VentrAssist LVAD catalogue number VA016, which has been implanted in over 220 patients worldwide, and is still available for sale.

There have been a number of confirmed cases of conductor fracture within the percutaneous lead, between the implantable blood pump and the intermediate connector. Statistical analysis completed very recently shows that the field reliability of the VA166 does not meet
Ventracor’s targets.

Lead integrity problems have been reported in 11 patients, of whom there have been three deaths, and the remainder have had repairs performed, a pump exchange, or a heart transplant. There were three patients who had traumatic accidental lead damage, and eight other patients with conductor fracture. In some cases, failure to follow the instructions for use was a contributing factor.

The Company has advised physicians worldwide that no new patients should be implanted with the VA166. The Company is working with its physician advisors to develop guidelines for management of patients already implanted with the device.

The impact of the Field Safety Notice on the following issues is currently unknown but Company expects to make an announcement regarding the status of these issues in the week beginning 23 February 2009:
• remedial action that may be required to enable the VA166 to be reintroduced to the market;
• the impact on Company revenue and its financial position as a whole, including the expected take up of the Ventrassist LVA3 LVAD as an alternative device; and
• the intentions of one party with whom the Company was in discussions regarding a potential sale transaction and another party that was understood by the Company tobe considering a potential debt financing proposal.
--------------------------------------------------------------------

 

[Miner]

A mistake has been made (refer below)

RIP Ventracor.

Tombstone reads - promised much but undercapitalised and couldn't compete against more financially secure foreign firms.

--------------------------------------------------------------------
Voluntary Field Safety Notice on LVA4 VentrAssist LVAD
Sydney AUSTRALIA 10 February 2009:
Ventracor Limited (ASX:VCR) reported today that it has issued an voluntary Urgent Field Safety Notice on the Model LVA4 VentrAssist ® Left Ventricular Assist Device (LVAD), catalogue number VA166. There have been 188 patients implanted worldwide with the VentrAssist LVAD Model LVA4, and 123 patients are still ongoing.

The Field Safety Notice does not affect other products such as the Model LVA3 VentrAssist LVAD catalogue number VA016, which has been implanted in over 220 patients worldwide, and is still available for sale.

There have been a number of confirmed cases of conductor fracture within the percutaneous lead, between the implantable blood pump and the intermediate connector. Statistical analysis completed very recently shows that the field reliability of the VA166 does not meet
Ventracor’s targets.

Lead integrity problems have been reported in 11 patients, of whom there have been three deaths, and the remainder have had repairs performed, a pump exchange, or a heart transplant. There were three patients who had traumatic accidental lead damage, and eight other patients with conductor fracture. In some cases, failure to follow the instructions for use was a contributing factor.

The Company has advised physicians worldwide that no new patients should be implanted with the VA166. The Company is working with its physician advisors to develop guidelines for management of patients already implanted with the device.

The impact of the Field Safety Notice on the following issues is currently unknown but Company expects to make an announcement regarding the status of these issues in the week beginning 23 February 2009:
• remedial action that may be required to enable the VA166 to be reintroduced to the market;
• the impact on Company revenue and its financial position as a whole, including the expected take up of the Ventrassist LVA3 LVAD as an alternative device; and
• the intentions of one party with whom the Company was in discussions regarding a potential sale transaction and another party that was understood by the Company tobe considering a potential debt financing proposal.
--------------------------------------------------------------------

My God

If one casuality happens from their mistake, the cost of liability will be have the sufficient amunition to extinguish VCR project altogether and in true RIP.
DNH

 

[Knobby22]

Ventracor into liquidation.

Another example of how a little Aussie battler can't compete on world markets against much bigger foes.

Bit sad but the writing was on the wall a year ago.

 

[skc]

Ventracor into liquidation.

Another example of how a little Aussie battler can't compete on world markets against much bigger foes.

Bit sad but the writing was on the wall a year ago.

Totally agree with your sentiment. I owned this share many years back and took a small loss. It is a shame that the early stage capital market isn't really well developed in Australia, and many small start-ups have no choice but to come to the equity market for capital. They are then subjected to many unnecessary pressures, like quarterly reports, PR spins, before they are ready, when they are better nutured under private ownership.

It's also the Liz Nosworthy effect. Watch out GPT holders...
http://business.watoday.com.au/business/shes-got-the-minus-touch-20090315-8ywr.html

 

[Knobby22]

Totally agree with your sentiment. I owned this share many years back and took a small loss. It is a shame that the early stage capital market isn't really well developed in Australia, and many small start-ups have no choice but to come to the equity market for capital. They are then subjected to many unnecessary pressures, like quarterly reports, PR spins, before they are ready, when they are better nutured under private ownership.

It's also the Liz Nosworthy effect. Watch out GPT holders...
http://business.watoday.com.au/business/shes-got-the-minus-touch-20090315-8ywr.html

SKC , good one. Love her name, she is not worthy.
Maybe VCR will get a private owner after liquidation and keep operating off the ASX?
The technology is not profitable enough in my opinion. Ducati was right about the short termism of it also (earlier in the thread).