NASDAQ, TSX: NVCN
VANCOUVER, April 11, 2018 /PRNewswire/ - Neovasc Inc.
("Neovasc" or the "Company") (NASDAQ, TSX: NVCN), a leader in the
development of minimally invasive transcatheter mitral valve
replacement technologies and the Neovasc Reducer™ (the "Reducer")
therapy for Refractory Angina, today announced that it has received
US$7,132,488 in proceeds from
investor initiated exercises of 4,885,266 of the Series C warrants
(the "Series C Warrants") issued pursuant to the November 2017 underwritten public offering (the
"2017 Public Transaction").
"This receipt into Treasury is significant. We believe it is
sufficient to substantially fund the Company for an additional four
months at our current burn rate, until approximately early 2019,
and increases our current cash on hand by almost 60%," commented
Chris Clark, Chief Financial Officer
of Neovasc.
10,273,972 Series C Warrants were originally issued in the 2017
Public Transaction, and 5,388,706 remain issued and outstanding at
the close of business on April 11,
2018. Each Series C Warrant may be exercised at an exercise
price equal to US$1.46 (subject to
adjustment) at any time prior to 11:59
p.m. (New York time) on
November 18, 2019 for a Series C unit
(a "Series C Unit"), with each Series C Unit being comprised of one
common share of the Company (each, a "Common Share"), one Series A
warrant (a "Series A Warrant") and one Series B warrant (a "Series
B Warrant").
For details concerning the terms of the securities issued
pursuant to the 2017 Public Transaction and concurrent private
placement (together with the 2017 Public Transaction, the "2017
Financings"), including the Series C Warrants, Series A Warrants
and Series B Warrants, see the prospectus supplement dated
November 10, 2017 and the forms of
such securities filed on SEDAR at www.sedar.com and with the SEC at
www.sec.gov. For a description of the risks associated with these
securities, including dilution to shareholders due to exercises or
conversions of the Company's outstanding warrants and convertible
notes, and the Company's need for significant additional funding,
among other things, see the Company's Annual Information Form,
which is available on SEDAR at www.sedar.com and on Form 6-K
furnished to the SEC at www.sec.gov.
There are 1,012,848,282 Common Shares issued and outstanding at
the close of business on April 11,
2018.
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 Reducer, for the treatment of refractory angina, which
is not currently available in the United
States and has been available in Europe since 2015, and the Tiara™ (the
"Tiara"), for the transcatheter treatment of mitral valve disease,
which is currently under clinical investigation in the United States, Canada and Europe. 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 regarding the
Company's plans and expectations concerning the Company's burn
rate, the $7,132,488 proceeds
substantially funding the Company for an additional four months
until approximately early 2019, and the potential dilution to
shareholders due to exercises or conversions of the warrants
(the "Warrants") or notes (the "Notes") issued pursuant to the 2017
Financings. Words and phrases such as "believe", "may" and
"potential", and similar words or expressions, are intended to
identify these 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 substantial doubt
about the Company's ability to continue as a going concern; risks
relating to the Warrants and Notes issued pursuant to the 2017
Financings, resulting in significant dilution to the Company's
shareholders; risks relating to the Company's need for significant
additional future capital and the Company's ability to raise
additional funding; risks relating to cashless exercise and
adjustment provisions in the Warrants and Notes issued pursuant to
the 2017 Financings, which could make it more difficult and
expensive for the Company to raise additional capital in the future
and result in further dilution to investors; risks relating to the
sale of a significant number of Common Shares of the Company; risks
relating to the exercise of Warrants or conversion of Notes issued
pursuant to the 2017 Financings, which may encourage short sales by
third parties; risks relating to the possibility that the Company's
Common Shares may be delisted from the Nasdaq or the TSX, which
could affect their market price and liquidity; risks relating to
the Company's Common Share price being volatile; risks relating to
the influence of significant shareholders of the Company over the
Company's business operations and share price; risks relating to
the Company's significant indebtedness, and its effect on the
Company's financial condition; risks relating to claims by third
parties alleging infringement of their intellectual property
rights; risks relating to lawsuits that the Company is subject to,
which could divert the Company's resources and result in the
payment of significant damages and other remedies; the Company's
ability to establish, maintain and defend intellectual property
rights in the Company's products; risks relating to results from
clinical trials of the Company's products, which may be unfavorable
or perceived as unfavorable; the Company's history of losses and
significant accumulated deficit; risks associated with product
liability claims, insurance and recalls; risks relating to use of
the Company's products in unapproved circumstances, which could
expose the Company to liabilities; risks relating to competition in
the medical device industry, including the risk that one or more of
the Company's competitors may develop more effective or more
affordable products; risks relating to the Company's ability to
achieve or maintain expected levels of market acceptance for the
Company's products, as well as the Company's ability to
successfully build its in-house sales capabilities or secure
third-party marketing or distribution partners; the Company's
ability to convince public payors and hospitals to include the
Company's products on their approved products lists; risks relating
to new legislation, new regulatory requirements and the efforts of
governmental and third-party payors to contain or reduce the costs
of healthcare; risks relating to increased regulation, enforcement
and inspections of participants in the medical device industry,
including frequent government investigations into marketing and
other business practices; risks associated with the extensive
regulation of the Company's products and trials by governmental
authorities, as well as the cost and time delays associated
therewith; risks associated with post-market regulation of the
Company's products; health and safety risks associated with the
Company's products and industry; risks associated with the
Company's manufacturing operations, including the regulation of the
Company's manufacturing processes by governmental authorities and
the availability of two critical components of the Reducer; risk of
animal disease associated with the use of the Company's products;
risks relating to the manufacturing capacity of third-party
manufacturers for the Company's products, including risks of supply
interruptions impacting the Company's ability to manufacture its
own products; risks relating to the Company's dependence on limited
products for substantially all of the Company's current revenues;
risks relating to the Company's exposure to adverse movements in
foreign currency exchange rates; risks relating to the possibility
that the Company could lose its foreign private issuer status under
U.S. federal securities laws; risks relating to breaches of
anti-bribery laws by the Company's employees or agents; risks
associated with future changes in financial accounting standards
and new accounting pronouncements; risks relating to the Company's
dependence upon key personnel to achieve its business objectives;
the Company's ability to maintain strong relationships with
physicians; risks relating to the sufficiency of the Company's
management systems and resources in periods of significant growth;
risks associated with consolidation in the health care industry,
including the downward pressure on product pricing and the growing
need to be selected by larger customers in order to make sales to
their members or participants; risks relating to the Company's
ability to successfully identify and complete corporate
transactions on favorable terms or achieve anticipated synergies
relating to any acquisitions or alliances; risks relating to the
Company's ability to successfully enter into fundamental
transactions as defined in the Series C warrants issued pursuant to
the 2017 Financings; anti-takeover provisions in the Company's
constating documents which could discourage a third party from
making a takeover bid beneficial to the Company's shareholders; and
risks relating to conflicts of interests among the Company's
officers and directors as a result of their involvement with other
issuers. These risk factors and others relating to the Company are
discussed in greater detail in the "Risk Factors" sections of the
Company's Annual Information Form, which has also been filed on
Form 6-K with the United States Securities and Exchange Commission
(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 or to
provide information relating to further incremental exercises of
Warrants or conversion of Notes beyond required periodic filings
with securities regulators, whether as a result of new information,
future events or otherwise, except as required by law.
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SOURCE Neovasc Inc.