Neovasc Provides Litigation Update
NASDAQ, TSX: NVCN
VANCOUVER, Nov. 3, 2017 /CNW/ – Neovasc Inc. ("Neovasc" or the "Company") (NASDAQ, TSX: NVCN) reported today that the United States Court of Appeals for the Federal Circuit affirmed the judgment of the United States District Court for the District of Massachusetts in the case of CardiAQ Valve Tech., Inc. v. Neovasc Inc. and denied the petition for panel rehearing and en banc rehearing filed by CardiAQ Valve Technologies, Inc. ("CardiAQ") and denied the petition for en banc rehearing filed by the Company. The mandate of the court will issue on November 13, 2017.
In summary, the appeals process is now exhausted. The full judgment of approximately US$112 million, of which approximately US$70 million is already held in an escrow account, will now become due on November 13, 2017. Neovasc will continue to evaluate all options available to the Company relating to the requirement to pay the damages and fund the remaining US$42 million not held in escrow, which exceeds the Company’s current cash resources.
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 Neovasc 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™, for the transcatheter treatment of mitral valve disease, which is currently under investigation in the United States, Canada and Europe. The Company also sells a line of advanced biological tissue products that are used as key components in third-party medical products including transcatheter heart valves. 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 and expectations regarding the options available to the Company for payment of the damages in its litigation with CardiAQ. Words and phrases such as "expected", "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, risks relating to the Company’s litigation with CardiAQ, including the Company’s ability to pay the judgement award or raise financing for the required funds on terms acceptable to the Company or at all, which create material uncertainty and which cast substantial doubt on the Company’s ability to continue as a going concern; the substantial doubt about the Company’s ability to continue as a going concern; risks relating to the Company’s need for significant additional future capital and the Company’s ability to raise additional funding; These risk factors and others relating to the Company are discussed in greater detail in the "Risk Factors" section of the Company’s Annual Information Form and in the Company’s Management’s Discussion and Analysis of Financial Condition and Results of Operations (copies of which filings may be obtained at www.sedar.com or www.sec.gov, each of which are included in the Company’s Annual Report on Form 40-F). 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.