ABMD » Topics » Our strategic investment in WorldHeart is subject to risk and we may not receive all of the benefits of the transaction we are anticipating.

This excerpt taken from the ABMD 10-Q filed Feb 11, 2008.

Our strategic investment in WorldHeart is subject to risk and we may not receive all of the benefits of the transaction we are anticipating.

In December 2007 and January 2008, we invested $5 million in WorldHeart in the form of a convertible note and warrant. Our investment in WorldHeart is subject to a number of risks and uncertainties. WorldHeart currently is not profitable and has limited financial resources and we may lose some or all of our investment if WorldHeart is unable to pay back the loan we have made to it. In addition, in accordance with applicable Nasdaq rules, we may not be able to obtain all of the shares of common stock of WorldHeart we are expecting if WorldHeart’s shareholders do not approve the transaction. In addition, WorldHeart’s stock is thinly traded, and we may not be able to easily liquidate our position in WorldHeart, if desirable. WorldHeart’s stock is volatile, and the value of our investment will fluctuate on a quarterly basis as a result. Because of inherent uncertainty of valuations of derivative instruments, estimated fair values may differ from the value that would have been used had a ready market for the investment existed, and these differences could have a material impact in the consolidated statements of operations.

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