Cedara reduces liabilities

January 9, 2002

Slowly but surely, Cedara Software is working to put its financial troubles to rest. The Canadian company has settled with certain holders of promissory notes, exchanging the notes

Slowly but surely, Cedara Software is working to put its financial troubles to rest. The Canadian company has settled with certain holders of promissory notes, exchanging the notes for 1.4 million shares of common stock and, in the process, cutting its liabilities by US$3.5 million. The company is negotiating with the remaining note holders to convert about US$3.6 million of debt into company equity. Meanwhile, Cedara has agreed with Carl Zeiss and its affiliates to settle certain financial and other contractual obligations. The agreement provides for a cash settlement of US$1.5 million to Zeiss, paid out over the course of 18 months commencing April 30, and for Cedara to provide US$1.5 million of software licenses and engineering services to Zeiss at no charge. The settlement agreement also provides that, following the provision of this software, both companies will enter into negotiations for Cedara to become a preferred OEM software supplier to a medical division of Zeiss. Cedara has also entered into an agreement under which Medtronic Surgical Navigation Technologies will purchase certain assets owned by Cedara's subsidiary, Surgical Navigation Specialists, related to its image-guided surgery business. Medtronic SNT will offer SNS customers support and a migration path to new Medtronic SNT image-guided systems.