Neovasc to fund Tiara project with $4 million private placement

Jul 21 2011

--Proceeds Will be Used To Fund New Initiative to Treat Mitral Valve Disease and to Complete Neovasc Reducer™ COSIRA Trial for Treating Refractory Angina--

Neovasc Inc. (TSXV: NVC) today announced that it intends to complete a non-brokered private placement with accredited investors of up to four million equity units at the price of $1.00 per unit for aggregate gross proceeds of up to $4.0 million. The company expects that insiders will purchase approximately half of the units. Proceeds of the offering will be used primarily to fund Neovasc's Tiara project, which is developing a novel transcatheter medical device to treat mitral valve heart disease, and to complete the COSIRA trial, which is a multicenter clinical trial intended to demonstrate the safety and efficacy of the Neovasc Reducer™, an innovative implantable product for treating refractory angina.

The completion of the private placement is subject to TSX Venture Exchange approval and the execution of definitive documentation with investors. The securities issued pursuant to the offering will be subject to a four-month hold period from the date of issuance, which is targeted for August 2011.

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 will entitle 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.

Alexei Marko, CEO of Neovasc commented, "With our tissue business now cash-flow positive and the COSIRA trial, which is designed to enable European marketing approval for our Reducer product, proceeding well, we are in a good position to invest more resources in our pipeline projects. We are focusing initially on our Tiara transcatheter solution for mitral valve disease, a debilitating condition affecting millions of patients worldwide. This program has demonstrated excellent early results in animal models, and this financing will provide Neovasc with the necessary funding to significantly advance this effort that we believe has substantial clinical and commercial potential."

SOURCE Neovasc Inc.