Shockwave Medical To Acquire Neovasc; Neovasc Shareholders To Receive $27.25/Share In Cash Upfront Plus Deferred Payments Of Up Tp $47M Upon Milestones in The Form Of A CVR

Author: Benzinga Newsdesk | January 17, 2023 09:03am
Under the terms of the Arrangement Agreement, Neovasc shareholders will receive US$27.25 per Common Share in cash upfront on completion of the Transaction, corresponding to an enterprise value of approximately US$100

Under the terms of the Arrangement Agreement, Neovasc shareholders will receive US$27.25 per Common Share in cash upfront on completion of the Transaction, corresponding to an enterprise value of approximately US$100 million,plus deferred payments of up to approximately US$47 million on the achievement of future regulatory milestones in the form of a contingent value right ("CVR") per Common Share to receive payment upon final FDA premarket approval to market the Neovasc Reducer™ (the "Reducer") in the United States for treatment of angina (the "Milestone"). Each CVR will pay: (i) US$12.00 if the Milestone is achieved on or prior to June 30, 2026, (ii) US$8.00 if the Milestone is achieved during the period beginning on July 1, 2026 and ending on December 31, 2026 or (iii) US$4.00 if the Milestone is achieved during the period beginning on January 1, 2027 and ending on December 31, 2027. The upfront cash consideration represents a premium of 27% and 68% to the closing price and 30-day volume-weighted average price ("VWAP"), respectively, of the Common Shares on the Nasdaq Capital Market on January 13, 2023.

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