Neovasc Inc. (TSXV: NVC) today announced that it intends to undertake a non-brokered private placement of approximately 3.7 million units at the price of $0.27 per unit for aggregate gross proceeds of $1.0 million. The private placement will include an over-allotment provision enabling the placement of an additional approximately 3.7 million units for total aggregate gross proceeds of $2.0 million. The proceeds of the offering will be used primarily to fund the COSIRA (Coronary Sinus Reduction for Treatment of Refractory Angina) Trial – a multicenter clinical trial intended to demonstrate the safety and efficacy of the company’s Reducer™ product for treating refractory angina. The completion of the private placement is subject to TSX Venture Exchange approval and the execution of definitive documentation with investors. The securities issued pursuant to the offering will be subject to a four-month hold period from the date of issuance.
Each unit consists of one common share of Neovasc stock and one-half of one common share purchase warrant of Neovasc stock. Each whole warrant will entitle the holder thereof to purchase one common share of Neovasc stock at the exercise price of $0.40 per share for a period of one year after the closing date of the offering.
“This financing provides Neovasc with the necessary funding to conduct our COSIRA clinical trial, which is designed to further demonstrate the safety and efficacy of our Reducer product for treating refractory angina in patients lacking other treatment options,” said Alexei Marko, chief executive officer of Neovasc.
“The COSIRA study, which is expected to expand the positive clinical data obtained from our initial 15-patient Reducer trial, will be conducted by leading physicians at internationally recognized medical centers. We anticipate that the results will provide key data for our CE mark application in Europe and will also help drive adoption of this exciting new product once it is cleared for marketing. We expect that our biological tissue product business will be profitable this year and therefore the proceeds of this financing can be substantially allocated to underwriting the COSIRA trial.”
Neovasc also announces that effective immediately, Efrem Kamen has resigned from his position as a member of Neovasc’s Board of Directors.
About Neovasc Inc.
Neovasc Inc. is a specialty vascular device company that develops, manufactures and markets medical devices for the rapidly growing vascular marketplace. The company's current products include the Neovasc Reducer™, a novel product in development to treat refractory angina, as well as a line of advanced biological tissue technologies that are used to enhance surgical outcomes and as key components in a variety of third party medical products such as percutaneous heart valves. For more information, visit: www.neovasc.com.