QT Vascular raises $14m

QT Vascular said this week it inked a private placement deal with Gem Global Yield Fund for up to $14.3 million (SGD $20 million) over the next 30 months.

In the funding agreement, Singapore-based QT Vascular will receive up to $7.2 million (SGD $10 million) over the next 30 months, with an option for an additional $7.2 million on identical terms to the original agreement. The option is available for a period of 6 months, the company said.

Funds are slated to support repaying existing debt, improve cash flow and increase production to support its non-drug coated Chocolate PTA products.

“This agreement with GEM Global continues the momentum, started with winning the legal case with AngioScore Inc. last year, and then signing a distribution agreement with Medtronic last month. It gives QT Vascular some strong alternatives as it secures funding for continued growth and development of the Company over the next few years. This capital commitment places QT Vascular in a commanding position to continue with its business and strategic partnership plans, improve the Group’s cash flow and increase production to support market demand for our products,” QT Vascular CEO Eitan Konstantino said in a prepared statement.

QT Vascular said it also agreed to issue 35 million warrants to GEM Global, each with the right to subscribe to 1 new ordinary share in the company. The rights will be exercisable for 5 years at a fixed price of 7¢ per share (SGD 10¢).

In February, QT Vascular said it inked a definitive agreement with Medtronic (NYSE:MDT) to distribute QT’s Chocolate PTA catheter for 5-years.

The deal between QT Vascular and Fridley, Minn.-based Medtronic will be automatically renewable for 2 additional 1-year periods, and both companies will continue to negotiate other aspects of their relationship.

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