NASDAQ, TSX: NVCN
VANCOUVER, March 23, 2018 /PRNewswire/ - Neovasc Inc.
("Neovasc" or the "Company") (NASDAQ, TSX:NVCN)
announced today that it has received written notification (the
"Notification Letter") from The Nasdaq Stock Market LLC ("Nasdaq")
notifying the Company that it is not in compliance with the minimum
market value requirement set forth in Nasdaq Rules for continued
listing on The Nasdaq Capital Market. Nasdaq Listing Rule
5550(b)(2) requires companies to maintain a minimum market value of
US $35 million and Listing Rule
5810(c)(3)(C) provides that a failure to meet the market value
requirement exists if the deficiency continues for a period of 30
consecutive business days. Based on the market value of the Company
for the 30 consecutive business days from February 6, 2018 to March
21, 2018, the Company no longer meets the minimum market
value requirement.
The Notification Letter does not impact the Company's listing on
The Nasdaq Capital Market at this time. In accordance with Nasdaq
Listing Rule 5810(c)(3)(C), the Company has been provided 180
calendar days, or until September 18, 2018, to regain compliance
with Nasdaq Listing Rule 5550(b)(2). To regain compliance, the
Company's market value must exceed US $35 million for a minimum of
10 consecutive business days. In the event the Company does not
regain compliance by September 18, 2018, the Company may be
eligible for additional time to regain compliance.
The Company intends to monitor the market value between now and
September 18, 2018 and intends
to cure the deficiency within the prescribed grace period. During
this time, we expect that the Company's common shares will continue
to be listed and trade on The Nasdaq Capital Market.
The Company's business operations are not affected by the
receipt of the Notification Letter.
The Company is also listed on the Toronto Stock Exchange and the
Notification Letter does not affect the Company's compliance status
with such listing.
About Neovasc Inc.
Neovasc is a specialty medical device company that develops,
manufactures and markets products for the rapidly growing
cardiovascular marketplace. Its products include the Reducer™
("Reducer), for the treatment of refractory angina which is not
currently available in the United
States and has been available in Europe since 2015 and the Tiara™ ("Tiara"),
for the transcatheter treatment of mitral valve disease, which is
currently under investigation in the
United States, Canada and
Europe. For more information,
visit: www.neovasc.com.
This news release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 and applicable Canadian securities laws regarding the
Company's plans to regain compliance with the Nasdaq minimum market
value deficiency within the prescribed grace period, the Company's
possible eligibility for additional time to regain compliance and
the Company's expectation that its common shares will continue to
be listed and trade on The Nasdaq Capital Market during the
prescribed grace period. Words and phrases such as "may",
"intends", "expect", "continue" and "will", and similar words
or expressions, are intended to identify these forward-looking
statements. Forward-looking statements are based on estimates
and assumptions made by the Company in light of its experience and
its perception of historical trends, current conditions and
expected future developments, as well as other factors that the
Company believes are appropriate in the circumstances. Many
factors and assumptions could cause the Company's actual results,
performance or achievements to differ materially from those
expressed or implied by the forward-looking statements, including,
without limitation, the substantial doubt about the Company's
ability to continue as a going concern; risks relating to the
possibility that the Company's common shares may be delisted from
the Nasdaq Capital Market or the Toronto Stock Exchange, including
Nasdaq's discretionary public interest authority to apply more
stringent criteria for continued listing or suspend or delist
securities and the Company's current minimum bid price deficiency
under Nasdaq Listing Rules, which could affect their market price
and liquidity; risks relating to the Company's need for significant
additional future capital and the Company's ability to raise
additional funding; risks relating to the Warrants and Notes,
offered pursuant to the November 2017
public offering of units and private placement of senior secured
convertible notes (the "Notes") and warrants (the "Financings"),
resulting in significant dilution to the Company's shareholders;
risks relating to it being more expensive for the Company to raise
capital in the future and dilution to investors; risks relating to
the Company's common share price being volatile; risks relating to
the sale of a significant number of common shares; risks relating
to the restrictions on the Company entering into certain
transactions; risks relating to the exercise of warrants (the
"Warrants") or conversion of Notes offered pursuant to the
Financings, which may encourage short sales by third parties; risks
relating to claims by third parties alleging infringement of their
intellectual property rights; the Company's ability to establish,
maintain and defend intellectual property rights in the Company's
products; risks relating to results from clinical trials of the
Company's products, which may be unfavorable or perceived as
unfavorable; the Company's history of losses and significant
accumulated deficit; risks associated with product liability
claims, insurance and recalls; risks relating to competition in the
medical device industry, including the risk that one or more
competitors may develop more effective or more affordable products;
risks relating to the Company's ability to achieve or maintain
expected levels of market acceptance for the Company's products, as
well as the Company's ability to successfully build the Company's
in-house sales capabilities or secure third-party marketing or
distribution partners; the Company's ability to convince public
payors and hospitals to include the Company's products on their
approved products lists; risks relating to new legislation, new
regulatory requirements and the efforts of governmental and third
party payors to contain or reduce the costs of healthcare; risks
relating to increased regulation, enforcement and inspections of
participants in the medical device industry, including frequent
government investigations into marketing and other business
practices; risks associated with the extensive regulation of the
Company's products and trials by governmental authorities, as well
as the cost and time delays associated therewith; risks associated
with post-market regulation of the Company's products; health and
safety risks associated with the Company's products and the
Company's industry; risks associated with the Company's
manufacturing operations, including the regulation of the Company's
manufacturing processes by governmental authorities and the
availability of two critical components of the Reducer; risk of
animal disease associated with the use of the Company's products;
risks relating to the manufacturing capacity of third-party
manufacturers for the Company's products, including risks of supply
interruptions impacting the Company's ability to manufacture its
own products; risks relating to breaches of anti-bribery laws by
the Company's employees or agents; risks associated with future
changes in financial accounting standards and new accounting
pronouncements; risks relating to the Company's dependence upon key
personnel to achieve the Company's business objectives; the
Company's ability to maintain strong relationships with physicians;
risks relating to the sufficiency of the Company's management
systems and resources in periods of significant growth; risks
associated with consolidation in the health care industry,
including the downward pressure on product pricing and the growing
need to be selected by larger customers in order to make sales to
their members or participants; the Company's ability to
successfully identify and complete corporate transactions on
favorable terms or achieve anticipated synergies relating to any
acquisitions or alliances; anti-takeover provisions in the
Company's constating documents which could discourage a third party
from making a takeover bid beneficial to the Company's
shareholders; risks relating to conflicts of interests among the
Company's officers and directors as a result of their involvement
with other issuers; and risks relating to the influence of
significant shareholders of the Company over the Company's business
operations and share price. These risk factors and others relating
to the Company are discussed in greater detail in the "Risk
Factors" sections of the Company's Annual Information Form and
Management's Discussion and Analysis of Financial Condition and
Results of Operations, each of which is included in its Annual
Report on Form 40-F, and the Company's Management Discussion and
Analysis for the third quarter of 2017 (copies of which filings may
be obtained at
www.sedar.com or www.sec.gov). These
factors should be considered carefully, and readers should not
place undue reliance on the Company's forward-looking
statements. The Company has no intention and undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by
law.
SOURCE Neovasc Inc.