Neovasc Inc. (TSXV: NVC) today announced that it has completed a previously announced non-brokered private placement of 4,720,500 equity units at the price of $1.00 per unit for aggregate gross proceeds of approximately $4,720,500. Reflecting strong demand, the total amount of the financing was increased from the previously announced maximum of $4 million. Proceeds of the offering will be used to complete the COSIRA clinical trial, which is designed to provide randomized, controlled safety and efficacy data for the Neovasc Reducer™, an innovative implantable product for treating refractory angina, as well as to advance Neovasc's Tiara™ project to develop a novel transcatheter medical device to treat mitral valve heart disease.
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 entitles the holder thereof to purchase one common share of Neovasc stock at the exercise price of $1.25 per share for a period of two years after the closing date of the offering. The securities issued are subject to a four-month hold period from the date of issuance and the placement has been approved by the TSX Venture Exchange.
Participants in the placement included OPKO Health Inc. (NYSE Amex: OPK) which invested $2 million and Gagnon Securities LLC, whose members invested $1.42 million. Company directors and officers purchased 95,000 of the equity units issued.
Alexei Marko, CEO of Neovasc commented, "We are encouraged by the strong support we received from new investors in this oversubscribed financing. Completion of this placement provides Neovasc with the necessary funding to significantly advance our pipeline projects that we believe have substantial clinical and commercial potential."