TransEnterix Inc. said it will explore strategic options and implement a restructuring plan to cut operating expenses.
The medical device company also revised an agreement related to the sale of its AutoLap product and intellectual property assets to Great Belief International Ltd. for $47 million.
Under the revised deal, Great Belief will no longer make a $30 million equity investment in the company. Additionally, the $17 million purchase price will now be paid in installments of $3 million, an irrevocable $13 million letter of credit by Oct. 31, and the remaining $1 million by Dec. 15.
AutoLap is an image-based scope positioning system used in laparoscopic procedures.
TransEnterix also engaged J.P. Morgan Securities LLC to assist its board in exploring strategic alternatives aimed at enhancing stockholder value. The company is considering sale, financing, strategic partnership, collaboration or other forms of commercial relationship.
There is no assurance the strategic review will lead to approval or completion of any transaction in the future, the company noted.
As of Sept. 30, the Morrisville, N.C.-based company had a total of $22.8 million in cash, cash equivalents and short-term investments. TransEnterix expects to have sufficient funds for its business operations until the first quarter of 2020.