Advanced NMR hit with shareholder suit
Some of Advanced NMR's shareholders are not pleased with the company'splan to acquire the remaining shares outstanding of subsidiaryAdvanced Mammography Systems (SCAN 2/14/96). The Wilmington, MA,company announced last week that a class action lawsuit
Some of Advanced NMR's shareholders are not pleased with the company'splan to acquire the remaining shares outstanding of subsidiaryAdvanced Mammography Systems (SCAN 2/14/96). The Wilmington, MA,company announced last week that a class action lawsuit has beenfiled against it by shareholders who claim that the terms of thetransaction are unfair.
Advanced NMR now owns 61% of Advanced Mammography Systems andintends to acquire 100% of the MR mammography developer underthe buyout plan. The company said that it is preparing proxy materialsfor the merger, which will be proposed to AMS shareholders ata meeting to be held in late spring. It said that it believesthe terms of the acquisition are fair.
ANMR this month also released financial results for the firstquarter of 1996 (end-December) that show the positive contributionbeing made by Medical Diagnostics, which ANMR acquired last August(SCAN 5/10/95).
ANMR had revenues for the quarter of $6.2 million, of whichAdvanced NMR system sales contributed only $49,000 while the restcame from MDI's imaging services business. ANMR had a net lossof $1.6 million, compared with a net loss of $2.2 million in thesame quarter last year. The MDI business was profitable. ANMRexpects system sales to increase, as the company has a $4.8 millionbacklog, according to chairman and CEO Jack Nelson.