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.
