Neovasc completes final tranche of previously announced non-brokered private placement

--Proceeds will be Used to Fund Reducer(TM) COSIRA Multi-Center Clinical Trial--

Neovasc Inc. (TSXV: NVC) today announced that it has completed the final tranche of a previously announced non-brokered private placement. The aggregate gross proceeds of the financing totaled $1.537 million through placement of approximately 5.692 million units at a price of $0.27 per unit, comprised of a first tranche of $1.329 million announced January 28, 2010 and this second tranche of $208,000. The proceeds of the offering will be used primarily to fund the COSIRA trial, a multi-center clinical trial intended to demonstrate the safety and efficacy of the company's Reducer(TM) product for treating refractory angina. The private placement is subject to final TSX Venture Exchange approval. The securities issued pursuant to the offering will be subject to a four-month hold period from the date of issuance.

Each unit consists of one common share of Neovasc and one-half of one common share purchase warrant of Neovasc. Each whole warrant entitles the holder to purchase one common share of Neovasc at the exercise price of $0.40 per share for a period of one year after the closing date of the offering. The majority of the offering was placed with existing investors, including members of Gagnon Securities, the Frost Group LLC, Peregrine Ventures, company management and medical and scientific advisors.

In addition, Neovasc announced today that on February 19, 2010 it granted a total of 1,220,000 options to directors and executive management of the company. These options have an exercise price of $0.355, equivalent to the Neovasc market price of $0.355 at closing on February 18, 2010. Of the issued options, 525,000 vest over a four-year period in accordance with the company's existing stock option plan, 95,000 options vest immediately and 600,000 vest after 12 months upon management achieving certain performance milestones established by the Board of Directors.

SOURCE Neovasc Inc.