Neovasc (NVCN) Agrees to Sell Tissue Processing Tech to Boston Scientific (BSX) in $75M Deal
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Neovasc Inc. (Nasdaq: NVCN) announced that Boston Scientific Corporation (NYSE: BSX), a global medical technology leader, has agreed to acquire Neovasc's tissue processing technology and facility for approximately US$67,909,800. Concurrently, Boston Scientific has committed to invest an additional US$7,090,200 in Neovasc for a 15% equity interest in the Company.
"Boston Scientific has been a long-term customer of Neovasc, having historically represented a sizeable percentage of our tissue processing revenues," commented Neovasc CEO, Alexei Marko. "As one of the world's premier device companies, with a global cardio-vascular franchise, this investment in Neovasc enables continued development of our lead products, Reducer and Tiara, and strengthens our resolve to revolutionize how structural heart disease is treated."
Under the terms of the equity investment, Boston Scientific has agreed to purchase 11,817,000 common shares in the capital of Neovasc (the "Common Shares") at a price of US$0.60 per Common Share, for gross proceeds of US$7,090,200, subject to required regulatory approvals, including approval of the Toronto Stock Exchange.
Under the terms of the asset purchase agreement Neovasc has been granted a license to the purchased assets and access to the sold facilities to allow it to continue its tissue and valve assembly activities for its remaining customers, and continue its own tissue-related programs, including advancing its mitral bioprosthesis valve Tiara™ through its clinical and regulatory pathways. The transaction is expected to close by year-end 2016, subject to customary closing conditions.
Neovasc intends to use the proceeds of these transactions for general corporate purposes.
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