Exhibit 99.1
Cardima Enters Into $3 Million Loan Agreement
FREMONT, Calif.--August 31, 2005--Cardima, Inc. (OTC: CRDM - News), developer of
the REVELATION(R) Tx, REVELATION(R) T-Flex and REVELATION(R) Helix microcatheter
systems for the treatment of atrial fibrillation has entered into a $3 million
loan agreement with Apix International Limited. This figure is an increase from
the $2 million in financing that was previously reported on August 15.
In accordance with this agreement, which was dated on August 28, 2005 Xxxxxxx
received a $500,000 bridge loan after signing the original Bridge Loan Agreement
and IP Security Agreement on August 15, 2005. The company then received an
additional $500,000 on Closing after signing of the Final Term Sheet together
with the Loan Agreement, IP Security Agreement and other documents required for
Closing on August 28, 2005. The remainder of the loan will be received as
follows: $500,000 on or after September 12, 2005, $500,000 on or after October
12, 2005, $350,000 on or after November 18, 2005, $350,000 on or after December
18, 2005, $300,000 on or after January 18, 2006.
All of the funds to be provided by Xxxx will bear interest at a rate of 10
percent per annum, will be evidenced by a Loan Agreement and will be secured by
a first lien on all of the Company's assets and intellectual property. The
financing is anticipated to be convertible into shares of Cardima's common stock
at a rate of $0.10 per share. Additionally, Cardima will provide the lender with
Warrant to purchase capital stock in the amount of 30,000,000, with a strike
price of $0.10. The financing facility has a term of 3 months ending on November
12, 2005. The Company is subject to certain reporting covenants such as the
timely filing of financial reports with the Securities and Exchange Commission,
monthly financial reporting deadlines and collateral reporting. Additional
details about these events can be found in the form 8-K to be filed by Cardima
Inc. with the Securities and Exchange Commision on August_31_, 2005
About Cardima
Cardima, Inc. has developed the REVELATION Tx, REVELATION T-Flex and REVELATION
Helix linear ablation microcatheters, the NAVIPORT deflectable guiding
catheters, and the INTELLITEMP energy management system for the minimally
invasive treatment of atrial fibrillation (AF. The REVELATION Tx, REVELATION
T-Flex and REVELATION Helix systems and the INTELLITEMP have received CE Mark
approval in Europe. The Company has also developed and obtained approval for in
the USA a Surgical Ablation System, which targets market application by cardiac
surgeons to ablate cardiac tissue during heart surgery using radio frequency
(RF) energy.
Except for the historical information contained herein, the matters discussed in
this press release are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from those
expressed in or implied by such forward-looking statements. Potential risks and
uncertainties include the uncertainties associated with the prospects for FDA
approval of our premarket approval application for the REVELATION Tx, including
the ramifications of our recent meeting with the FDA, the prospect for any
future clinical trials or regulatory activities, the Company's ability to obtain
funding under the Agility loan facility, the risks associated with the Agility
loan facility's restrictive covenants, security interest, fee provisions and
other terms and conditions, the risk that the Company will not be able to raise
additional capital in the immediate term as needed to continue operations and
the risk that we will be unable to secure a strategic transaction involving the
Surgical Ablation System. Additional risks and uncertainties are set forth in
the Company's Annual Report on Form 10-K for the year ended December 31, 2004,
the Company's Quarterly Report on Form 10-Q for the first quarter ended March
31, 2005, and in the Company's subsequent SEC filings. The Company undertakes no
obligation to publicly release the result of any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof, or to reflect the occurrence of unanticipated events or
changes in the Company's plans or expectations.
Contact:
Cardima, Inc.
Xxxx Xxxx, 000-000-0000
xxx.xxxxxxx.xxx
or
Investor:
Investor Relations Group
Xxxxxx Xxxxxxxxxxx/Xxxx Xxxxxxx, 000-000-0000
