Luna Innovations settles with Hansen Medical
- December 14, 2009
Roanoke-based Luna Innovations has settled a lawsuit with California-based Hansen Medical that threatened Luna’s survival.
The deal orders Luna to give Hansen:
- a $5 million promissory note,
- a block of Luna’s stock, and
- agreements that will provide its fiber-optic technology to Hansen.
Luna had filed for bankruptcy in July after a California jury ordered it to pay $36 million in a breach of contract suit.
Under the agreement, Luna will give Hansen the four-year promissory note, 9.9 percent of its common stock and a warrant to purchase additional stock for three years. In addition, Luna will provide Hansen with fiber-optic shape sensing and localization technology to be used in Hansen’s robotic and non-robotic instruments.
“This settlement with Hansen Medical clears the largest hurdle on our pathway to emerge from Chapter 11 reorganization and pay our creditors what they are owed,” Kent Murphy, Luna’s chairman and CEO said in a statement. “We look forward to integrating our shape sensing technology with Hansen’s surgical devices, as we expand the potential market for our products in robotically assisted procedures. It’s exciting for Luna and Hansen to move forward together in a long-term partnership that is focused on creating enhanced procedures that help save lives.”