Neovasc raises $65m cover damages in CardiAQ case

Neovasc (NSDQ:NVCN) said today it closed an offering of approximately $37.5 million and a private placement of approximately $27.8 million to cover the roughly $42 million balance of damages and interest in a litigation with  Edwards Lifesciences (NYSE:EW) subsidiary CardiAQ Valve.

In its offering, Neovasc offered approximately 6.6 million Series A units and 19.1 million Series B units at a price of $1.46 per unit.

In a separate private placement, the Vancouver-based company sold approximately $32.8 million aggregate principal amount of senior secured convertible notes and Series E warrants, bringing in gross proceeds of roughly $27.8 million

Canaccord Genuity acted as sole book-running manager for the offering and sole placement agent for the private placement, the company said.

Funds will fully cover the approximately $42 million balance of damages and interest awards in litigation with CardiAQ, the company said in a press release, after subracting the $70 million it paid from escrow to CardiAQ. Remaining funds will support its ongoing Tiara clinical program, completion of its Tiara-II study and for general corporate purposes.

Neovasc shares have risen 11.4% so far today, at 89¢ as of 11:34 a.m. EST.

A jury in May 2016 awarded $70 million to CardiAQ after finding that Neovasc misappropriated trade secrets in developing its Tiara transcatheter mitral valve replacement device (Edwards inherited the lawsuit when it acquired CardiAQ Valve for $400 million in August 2014). A federal judge in Massachusetts added $21 million in enhanced damages to the decision in November 2016.

Neovasc said Nov. 3 that the U.S. Court of Appeals for the Federal Circuit, which in September upheld the district court ruling, also denied it and its rival’s bids for rehearings.

The post Neovasc raises $65m cover damages in CardiAQ case appeared first on MassDevice.

from MassDevice http://ift.tt/2AVxYgK