Healthcare Industry News: North American Scientific
News Release - April 24, 2007
John B. Rush Commences Employment With North American Scientific as Its President and Chief Executive OfficerCHATSWORTH, Calif.--(HSMN NewsFeed)--North American Scientific, Inc. (Nasdaq:NASI ) today announced that on April 23, 2007, John B. Rush commenced employment with the Company as its President and Chief Executive Officer. Pursuant to his employment agreement and as an inducement to his entering into employment with the Company, on that date, the Company granted stock options to Mr. Rush with respect to 1,800,000 shares of its common stock. The options have an exercise price equal to the fair market value of the stock at the close of trading on April 23, which was $1.16 per share. In addition, if within 24 months of the date of commencement of Mr. Rush's employment with the Company, the Company issues additional shares of stock in connection with raising capital in a private placement transaction, the Company is required to grant options to Mr. Rush to acquire an additional number of shares of common stock equal to 3% of the number of shares issued in connection with such transaction, with an exercise price equal to the fair market value of the stock on the closing date of such transaction.
All of the options have a term of ten years and vest monthly over a four-year period following the date of grant. The options remain exercisable until the earlier of the expiration of the term of the option or (i) three months following Mr. Rush's date of termination in the case of termination for reasons other than cause, death or disability (as such terms are defined in his employment agreement) or (ii) 12 months following Mr. Rush's date of termination in the case of termination on account of death or disability. In the event that Mr. Rush is terminated for cause, all outstanding options, whether vested or not, will immediately lapse.
The Company also announced today that it has received the written consent of a majority of stockholders to: (1) amend the Company's Certificate of Incorporation to increase the number of shares of common stock that the Company is authorized to issue from 40,000,000 to 100,000,000 shares; and (2) ratify the grant of stock options to John Rush (described above) to acquire shares of the Company's common stock.
"I am excited to begin my work at North American Scientific," said Mr. Rush. "The Company has seen very good results in animals with respect to the design of the ClearPath(TM) product and I look forward to the successful commercialization of ClearPath HDR in the coming months."
The Company will be demonstrating ClearPath(TM) at the upcoming 28th Annual Meeting of the American Brachytherapy Society in Chicago, Illinois from April 29-May 1, as well as the 8th Annual Meeting of the American Society of Breast Surgeons, May 2-6.
About North American Scientific
North American Scientific is a leader in radiation therapy products and services in the fight against cancer. Its innovative products provide physicians with tools for the treatment of various types of cancers. They include Prospera® brachytherapy seeds and SurTRAK(TM) needles and strands used primarily in the treatment of prostate cancer. In addition the Company plans to commercialize its ClearPath(TM) multi-channel catheter breast brachytherapy devices in 2007, which are the only devices approved for both high dose and continuous release, or low dose, radiation treatments. The devices are designed to provide flexible, precise dose conformance and an innovative delivery system that is intended to offer the more advanced form of brachytherapy for the treatment of breast cancer. North American Scientific also provides external beam radiation therapy products for Serial Tomotherapy Intensity Modulated Radiation Therapy (IMRT) and Image-Guided Radiation Therapy (IGRT). Serial tomotherapy IMRT allows an escalated radiation dose to be delivered to a tumor while limiting exposure and damage to nearby healthy tissue. These products are marketed under the trade names nomosSTAT(TM)and CORVUS® (our proprietary treatment planning software). The Company's IGRT products, BAT®, BATCAM(TM) and nTRAK(TM), provide fast and accurate targeting and localization of a treatment volume on a daily basis. More than 500 hospitals and research sites worldwide are equipped with the Company's clinically proven serial tomotherapy, inverse treatment planning, image-guidance and ancillary treatment solutions. Please visit www.nasmedical.com for more information.
Statements included in this release that are not historical facts may be considered forward-looking statements that are subject to a variety of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the Company including, but not limited to, the impact of competitive products and pricing, technological changes, changes in relationships with strategic partners and dependence upon strategic partners for the performance of critical activities under collaborative agreements, the ability of the Company to successfully directly market and sell its products, uncertainties relating to patent protection and regulatory approval, the stable supply of appropriate isotopes, research and development estimates, market opportunities, risks associated with strategic opportunities or acquisitions the Company may pursue and the risk factors included in the Company's filings with the Securities and Exchange Commission. Any forward-looking statements contained in this news release speak only as of the date of this release, and the Company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future results or otherwise.
Source: North American Scientific
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