North American Scientific (NAS) has entered into a definitive agreement to sell its prostate brachytherapy product line to Best Theratronics, part of the TeamBest group of companies.
The products currently include Prospera brachytherapy seeds, SurTRAK needles and strands and various accessories used primarily in the treatment of prostate cancer. NAS will receive $5 million for the product line, with $2 million paid at transaction closing and the remaining $3 million paid in installments over a 12-month period following the closing, according to the Chatsworth, Calif.-based company.
NAS said its board of directors has approved the transaction. A meeting of NAS’ stockholders to consider and vote on the proposed transaction will be called and held as promptly as possible, consistent with the requirements of the Securities and Exchange Commission, the Nasdaq Stock Market and Delaware law.
The transaction is expected to close in April 2009. NAS and Best also entered into a short-term management agreement which provides that Best will manage NAS's prostate brachytherapy business from March 1, until the closing.