Beverly Hills-based Cardo Medical has cut 15 of its 30 employees in varying functions in an effort to preserve cash as it looks for ways to stay afloat. Additionally, CEO Andrew Brooks and COO Michael Kvitnitsky have agreed to give up their salaries "for the foreseeable future." The orthopedic medical device company, which is developing reconstructive joint and spinal surgical devices, most recently attempted to raise funds through a private placement, but was unsuccessful. Last year the company was able to raise $6.2 million in a private placement equity to support its operating expenses.
"As previously disclosed in our public filings, the company has been exploring ways to raise additional capital during 2010 and unfortunately, to date we have been unsuccessful," Brooks said in a statement. "We deeply regret that we have had to terminate so many of our talented employees. At this time, we continue to seek alternative sources of capital, including the selling of some or all of the company's assets, as well as looking to enter into strategic alliances. In the event we are unable to raise additional funds, we may have to terminate additional employees, further scale back or cease operations and seek other strategic or liquidity alternatives.
- check out Cardo's release