Neovasc Announces Partial Prepayment of Convertible Debenture
July 23 2020 - 4:17PM
via NEWMEDIAWIRE -- Neovasc Inc. (“Neovasc” or the “Company”)
(NASDAQ, TSX: NVCN) announced today that Strul Medical Group LLC
(“SMG”) exercised 1,424,049 of the 2,573,959 common share purchase
warrants (the “May Warrants”) issued pursuant to a Securities
Purchase Agreement dated May 26, 2020 at an exercise price of
US$2.634 per May Warrant for aggregate exercise proceeds to the
Company of US$3,750,945.07 (the “Exercise Proceeds”).
Using the Exercise Proceeds, the Company has prepaid a portion
of the convertible debenture (the “Note”) in the aggregate
principal amount of US$11,500,000 issued to SMG pursuant to a
private placement on May 13, 2019. The total aggregate amount of
the Exercise Proceeds has been applied to the prepayment of the
Note whereby US$3,613,341.12 has been applied to the principal of
the Note, US$72,266.82 has been paid as a prepayment penalty
pursuant to the terms of the Note and US$65,337.13 has been paid in
accrued interest. In connection with the prepayment of the Note,
the Company also issued to SMG 481,778 common share purchase
warrants (the “Repayment Warrants”) at an exercise price of US$7.50
per Repayment Warrant in accordance with the terms of the Note.
The number of issued and outstanding shares of the Company
following the transactions above is 17,613,355 and the unchanged
fully diluted share count remains 29,207,819.
“Once again we are pleased that SMG has demonstrated strong
support for the Company, taking this voluntary step to reduce the
Company’s annual interest charges by approximately $360,000 per
year on a go forward basis without any increase in our fully
diluted share count or any impact to our current cash position,”
commented Fred Colen, President and Chief Executive Officer of
Neovasc.
About Neovasc Inc.
Neovasc is a specialty medical device company that develops,
manufactures and markets products for the rapidly growing
cardiovascular marketplace. The Company is a leader in the
development of minimally invasive transcatheter mitral valve
replacement technologies, and minimally invasive devices for the
treatment of refractory angina. Its products include the Neovasc
Reducer™, for the treatment of refractory angina, which is not
currently commercially available in the United States (2 U.S.
patients have been treated under Compassionate Use) and has been
commercially available in Europe since 2015, and Tiara™, for the
transcatheter treatment of mitral valve disease, which is currently
under clinical investigation in the United States, Canada, Israel
and Europe. For more information,
visit: www.neovasc.com.
Investors
Mike Cavanaugh
Westwicke/ICR
Phone: +1.646.877.9641
Mike.Cavanaugh@westwicke.com
Media
Sean Leous
Westwicke/ICR
Phone: +1.646.677.1839
Sean.Leous@icrinc.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. When used
herein, the words "expect", "anticipate", "estimate", "may",
"will", "should", "intend," "believe", and similar expressions, are
intended to identify forward-looking statements. Forward-looking
statements may involve, but are not limited to, expectations as to
the growing cardiovascular marketplace. 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 could cause the Company's actual
results, performance or achievements to differ materially from
those expressed or implied by the forward looking statements,
including those described 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, 2020
(copies of which 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.
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