- Boston Scientific acquires tissue
processing capabilities and takes equity stake in Neovasc
-
NASDAQ: NVCN
TSX: NVC
VANCOUVER, Dec. 2, 2016 /PRNewswire/ - Neovasc Inc.
("Neovasc" or the "Company") (NASDAQ: NVCN) (TSX:
NVC) today announced that Boston Scientific Corporation (NYSE:
BSX), a global medical technology leader, has agreed to acquire
Neovasc's tissue processing technology and facility for
approximately US$67,909,800.
Concurrently, Boston Scientific has committed to invest an
additional US$7,090,200 in Neovasc
for a 15% equity interest in the Company.
"Boston Scientific has been a long-term customer of Neovasc,
having historically represented a sizeable percentage of our tissue
processing revenues," commented Neovasc CEO, Alexei Marko. "As one of the world's premier
device companies, with a global cardio-vascular franchise, this
investment in Neovasc enables continued development of our lead
products, Reducer and Tiara, and strengthens our resolve to
revolutionize how structural heart disease is treated."
Under the terms of the equity investment, Boston Scientific has
agreed to purchase 11,817,000 common shares in the capital of
Neovasc (the "Common Shares") at a price of US$0.60 per Common Share, for gross proceeds
of US$7,090,200, subject to required
regulatory approvals, including approval of the Toronto Stock
Exchange.
Under the terms of the asset purchase agreement Neovasc has been
granted a license to the purchased assets and access to the sold
facilities to allow it to continue its tissue and valve assembly
activities for its remaining customers, and continue its own
tissue-related programs, including advancing its mitral
bioprosthesis valve Tiara™ through its clinical and regulatory
pathways. The transaction is expected to close by year-end
2016, subject to customary closing conditions.
Neovasc intends to use the proceeds of these transactions for
general corporate purposes.
About Neovasc Inc.
Neovasc is a specialty medical device company that develops,
manufactures and markets products for the rapidly growing
cardiovascular marketplace. Its products include the Neovasc
Reducer™, for the treatment of refractory angina which is not
currently available in the U.S. and has been available in
Europe since 2015 and the Tiara™,
for the transcatheter treatment of mitral valve disease, which is
currently under investigation in the US, Canada and Europe. The Company also sells a line of
advanced biological tissue products that are used as key components
in third-party medical products including transcatheter heart
valves. For more information, visit: www.neovasc.com.
This news release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 and applicable Canadian securities laws relating to the
Company's transaction with Boston Scientific, including the
anticipated closing of the transaction and the Company's intended
use of net proceeds. The words "expected", "will", "anticipated",
"look forward", "eventually", "subject to", "intends" and similar
words or expressions are intended to identify forward-looking
statements. Forward-looking statements are based on estimates
and assumptions made by the Company in light of its experience and
its perception of historical trends, current conditions and
expected future developments, as well as other factors that the
Company believes are appropriate in the circumstances. Many
factors and assumptions could cause the Company's actual results,
performance or achievements to differ materially from those
expressed or implied by the forward-looking statements, including,
without limitation, the parties' ability to satisfy
regulatory approvals and other closing conditions and to complete
the transactions; the Company's broad discretion in the use
of proceeds; the conduct or possible outcomes of any actual
or threatened legal proceedings; the Company's ability to stay the
payment of the awards in the CardiAQ litigation and its ability to
successfully appeal the validity of the awards as well as the
ruling on inventorship, which are inherently uncertain and which
create material uncertainty and cast substantial doubt on the
Company's ability to continue as a going concern; the potential
impact on the Company's business of an adverse decision in the
appeal on the question of inventorship even if the Company prevails
on its appeal of the awards; potential changes in circumstances
relating to the Company's financing requirements, whether as a
result of the CardiAQ litigation, unforeseen circumstances or
otherwise; the Company's ability to raise additional funding;
the potential benefits of the Neovasc Reducer™ and Tiara™ as
compared with other products; successful enrollment of patients in
studies and trials for the Neovasc Reducer™ and Tiara™; results of
the trials and studies for the Neovasc Reducer™ and Tiara™ that
meet the Company's expectations; the Company's receipt of any
required local and institutional regulatory approvals and the
timing and costs of obtaining such approvals; European enrollment
in our clinical trials, studies and compassionate use cases and the
success of applications in Europe;
the Company's ability to protect its intellectual property; changes
in business strategy or development plans; existing governmental
regulations and changes in, or the failure to comply with,
governmental regulations and general economic and business
conditions, both nationally and in the regions in which the Company
operates. These risk factors and others relating to the Company are
discussed in greater detail in the "Risk Factors" section of the
Company's Annual Information Form, which is included in its Annual
Report on Form 40-F and Management's Discussion and Analysis of
Financial Condition and Results of Operation (copies of which
filings may be obtained at www.sedar.com or www.sec.gov).
These factors should be considered carefully, and readers should
not place undue reliance on the Company's forward-looking
statements. The Company has no intention and undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE Neovasc Inc.