It has joined several of the firms which have canceled the IPO in the recent past amid high market volatility and uncertainty.
The primary purpose of the IPO was to use the money collected through the IPO for repaying the debt. Somehow, I do NOT usually like this kind of idea of using the public money to repay the debt. Though the company management has said that this cancellation of IPO has been done as the company board believes that it is not in the interest of the company to come out with its IPO, but the main reason that seems to me is that the high market volatility in the stock markets may have been seen as hampering the money collection process.
LifeWatch Corp., which makes remote heart monitoring devices, has canceled its proposed initial public offering, according to a Securities and Exchange Commission filing on Friday.
LifeWatch first registered for an IPO in December 2006. On Friday, LifeWatch said its board determined that the IPO is not in the company's best interests but did not provide the reasons for that decision.
The Buffalo Grove, Ill.-based company planned to use the IPO proceeds to repay about $27.7 million of its outstanding debt, to launch and market services for the LifeStar ACT cardiac event monitoring device and for other corporate purposes.
LifeWatch is a subsidiary of Card Guard AG, which trades on the SWX Swiss Exchange.
Cowen and Co., Jefferies & Co. and Piper Jaffray were expected to underwrite the IPO. LifeWatch had planned to list its stock on the Nasdaq Global Market.
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