Neovasc, Inc. (NASDAQ: NVCN) (TSX: NVCN) is engaged as a specialty medical device company, which is focused on the development, manufacturing, and marketing of cardiovascular devices. Shares of the medical device company are rallying 29% through afternoon trading on Tuesday, January 17, 2023. Over the past three months, Neovasc has seen average daily volume of 17,140 shares. However, volume of 964,918 shares or dollar volume of around $26.73 million, has already exchanged hands through afternoon trading.
Shares of Neovasc are rallying after the company announced it has entered into a binding agreement to be acquired by Shockwave Medical, Inc. (NASDAQ: SWAV). Under the terms of the deal, Shockwave will acquire all issued and outstanding shares of Neovasc for $27.25 per share. The total value of the transaction stands at $100 million and will include a contingent value right (CVR) of up to $47 million. The CVR is payable upon final FDA premarket approval for Neovasc Reducer in the United States as a treatment of angina.
In order to be approved, the transaction much either satisfy one of the following conditions: 66 2/3% of votes cast by common shareholders in favor of the transaction or approval by holders excluding common shares held by “interested parties.” The transaction remains subject to other customary conditions as well. Management estimates the deal to close sometime during the first half of 2023.
“Today’s announcement is good news for our stakeholders and the Reducer program,” said Fred Colen, Neovasc’s President and Chief Executive Officer. “We have made tremendous strides building accelerating revenue, clinical data, commercial reimbursement, and a fantastic team, and now it’s time to take the next step to accelerate Reducer adoption globally. The team at Shockwave has demonstrated an extraordinary ability to scale novel technologies and build value for patients, customers and investors, and we are thrilled to become a part of their organization.”
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