Neovasc (NSDQ:NVCN) said today that it inked a $3 million settlement agreement with Micro Interventional Devices to resolve undisclosed allegations related to Neovasc’s transcatheter mitral valve replacement technology, including its flagship Tiara device, and added that it has raised approximately $1.2 million.
The agreement includes payments totally approximately $3 million to be made by Neovasc to MID over the next two and a half years, Neovasc said in a press release.
The settlement deal includes a 1.3% royalty to be paid to MID on the annual net sales of the Tiara, Neovasc said. The agreement also includes a buy-out clause that allows Neovasc, or anyone who purchases the company or its Tiara assets, to buy-out the royalty obligations.
As part of the agreement, charges levied by MID against Neovasc will be dismissed without prejudice, MID said in a prepared statement..
“We are delighted to announce the resolution of yet another legal challenge from the past, via a reasonable settlement agreement with MID, which will remove further uncertainty for the company moving forward,” Neovasc CEO Fred Colen said in a press release.
Neovasc also announced that it has raised $1.2 million in proceeds from investor-initiated exercises of the last of its Series C warrants.
“We are also glad to announce that all of the Series C warrants and more importantly all of the underlying Series B warrants from the 2017 financings have now been exercised, leaving only Series A warrants and Series E warrants from the 2017 financings outstanding. These outstanding warrants are minimally dilutive; they convert into 1/100th of a common share, irrespective of the current share price; finally, we are now down to US$10.8 million of debt notes outstanding, of which, only US $2 million is held by the only debt note holder who, to date, has been converting debt notes into common shares; I see more light at the end of the tunnel,” Colen said in a prepared release.
Late last month, Neovasc said that it won approval to advance a clinical trial for its Tiara transcatheter mitral valve replacement, sending its share price up on Wall Street.