NASDAQ, TSX: NVCN
VANCOUVER, June 25, 2019 /CNW/ - Neovasc Inc. ("Neovasc" or
the "Company") (NASDAQ:NVCN) (TSX: NVCN), a leader in the
development of minimally invasive transcatheter mitral valve
replacement technologies and in the development of minimally
invasive devices for the treatment of refractory angina, announced
today that it has received written notification (the "Nasdaq
Notice") from The Nasdaq Stock Market LLC ("Nasdaq") notifying the
Company that it has regained compliance with the minimum market
value requirement set forth in the rules for continued listing on
the Nasdaq Capital Market (the "Listing Rules").
The Company received a letter from the Nasdaq in January 2019 notifying it that it was not in
compliance with the minimum market value requirement set forth in
Listing Rule 5550(b)(2). The Nasdaq Notice confirms that the
Company has regained compliance with Listing Rule 5550(b)(2)
pursuant to Listing Rule 5810 as the Company's market value
exceeded US$35 million for 10
consecutive business days between June 11,
2019 through June 24,
2019.
The Company must still regain compliance with the minimum bid
price requirement under Listing Rule 5550(a)(2) before July 15, 2019. In the event the Company does not
regain compliance by July 15, 2019,
the Company may be eligible for additional time to regain
compliance or may be delisted. To regain compliance, the closing
bid price of the common shares of the Company (the "Common Shares")
on the Nasdaq Capital Market will need to be at least US$1.00 per share for a minimum of 10 consecutive
business days.
The Company is also listed on the Toronto Stock Exchange (the
"TSX") and the Company's noncompliance with the Nasdaq minimum bid
price requirement does not affect the Company's compliance status
with the TSX.
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 (the "Reducer"), for the treatment of refractory angina,
which is not currently commercially available in the United States and has been commercially
available in Europe since 2015,
and 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.
Forward-Looking Statement Disclaimer
Certain statements in this news release contain forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 and applicable Canadian securities
laws that may not be based on historical fact, including without
limitation statements containing the words "believe", "may",
"plan", "will", "estimate", "continue", "anticipate", "intend",
"expect" and similar expressions. Forward-looking statements may
involve, but are not limited to, beliefs and expectations relating
the Company's need to regain compliance with the Nasdaq minimum bid
price requirement within the prescribed grace period and the
growing cardiovascular marketplace. 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,
risks relating to the possibility that the Company's common shares
may be delisted from the Nasdaq Capital Market or the Toronto Stock
Exchange, including Nasdaq's discretionary public interest
authority to apply more stringent criteria for continued listing or
suspend or delist securities, which could affect their market price
and liquidity; the substantial doubt about the Company's ability to
continue as a going concern; risks relating to the senior secured
convertible notes (the "Notes") issued pursuant to the November 2017 private placement (the "2017
Financing"), 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 Notes issued pursuant to the 2017
Financing, 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 conversion of the senior secured convertible Notes issued
pursuant to the 2017 Financing, which may encourage short sales by
third parties; risks relating to the Company's conclusion that it
did not have effective internal control over financial reporting as
at December 31, 2018; 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 Notes 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" section of the Company's
Annual Report on Form 20-F and in the Management's Discussion and
Analysis for the three months ended March
31, 2019 (copies of which may be obtained at www.sedar.com
or www.sec.gov). In particular, in addition to the specified
criteria for continued listing, Nasdaq also has broad discretionary
public interest authority that it can exercise to apply additional
or more stringent criteria for the continued listing of the
Company's common shares, or suspend or delist securities even if
the securities meet all enumerated criteria for continued listing
on the Nasdaq Capital Market. The Nasdaq could use this
discretionary authority at any time to delist the Company's common
shares. There can be no assurance that Nasdaq will not exercise
such discretionary authority. In addition, there is no assurance
that the Company will be able to regain compliance with the minimum
bid price requirement prior to expiration of the prescribed
compliance period, or if it does, that the Company will be able to
maintain such compliance as a result of the risks and uncertainties
described above. As previously disclosed, the Company sought and
received shareholder approval at its Annual General and Special
Meeting, held on June 4, 2019, to
carry out, at the discretion of the Company's Board of Directors, a
share consolidation of the issued and outstanding Common Shares on
the basis of up to 10 existing Common Shares for one new Common
Share. There can also be no assurance that the Company will be able
to maintain compliance with the minimum market value requirement.
The Company has no intention and undertakes no obligation to update
or revise any forward-looking statements 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.