NASDAQ, TSX: NVCN
VANCOUVER, Aug. 22, 2019 /CNW/ - ("Neovasc" or the
"Company") (NASDAQ:NVCN)(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 July 10, 2019 to
August 20, 2019, 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 February 17, 2020, 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 February 17, 2020, the Company may be eligible
for additional time to regain compliance or may face delisting.
The Company intends to monitor its market value between now and
February 17, 2020 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 Neovasc Reducer™ (the "Reducer"), for the
treatment of refractory angina, which is not currently commercially
available in the United States and
has been commercially available in Europe since 2015, and the Tiara™, for the
transcatheter treatment of mitral valve disease, which is currently
under clinical 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 requirement within the prescribed grace period, the Company's
possible eligibility for additional time to regain compliance upon
expiration of the prescribed compliance period, the Company's
expectation that its common shares will continue to be listed and
trade on the Nasdaq Capital Market during the prescribed compliance
period and the rapidly growing cardiovascular marketplace. 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, 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, which could affect their market price and liquidity;
the substantial doubt about the Company's ability to continue as a
going concern; risks relating to the senior secured convertible
notes (the "Notes") issued pursuant to the November 2017 private placement (the "2017
Financing"), resulting in significant dilution to the Company's
shareholders; risks relating to the Company's need for significant
additional future capital and the Company's ability to raise
additional funding; risks relating to cashless exercise and
adjustment provisions in the Notes issued pursuant to the 2017
Financing, which could make it more difficult and expensive for the
Company to raise additional capital in the future and result in
further dilution to investors; risks relating to the sale of a
significant number of common shares of the Company; risks relating
to the conversion of the senior secured convertible Notes issued
pursuant to the 2017 Financing, which may encourage short sales by
third parties; risks relating to the Company's conclusion that it
did not have effective internal control over financial reporting as
at December 31, 2018; risks relating
to the Company's common share price being volatile; risks relating
to the influence of significant shareholders of the Company over
the Company's business operations and share price; risks relating
to the Company's significant indebtedness, and its effect on the
Company's financial condition; risks relating to claims by third
parties alleging infringement of their intellectual property
rights; risks relating to lawsuits that the Company is subject to,
which could divert the Company's resources and result in the
payment of significant damages and other remedies; 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 use of
the Company's products in unapproved circumstances, which could
expose the Company to liabilities; risks relating to competition in
the medical device industry, including the risk that one or more of
the Company's 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 its 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 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 the Company's dependence on limited
products for substantially all of the Company's current revenues;
risks relating to the Company's exposure to adverse movements in
foreign currency exchange rates; risks relating to the possibility
that the Company could lose its foreign private issuer status under
U.S. federal securities laws; 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 its 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; risks relating to the Company's
ability to successfully identify and complete corporate
transactions on favorable terms or achieve anticipated synergies
relating to any acquisitions or alliances; risks relating to the
Company's ability to successfully enter into fundamental
transactions as defined in the Notes issued pursuant to the 2017
Financings; 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; and risks
relating to conflicts of interests among the Company's officers and
directors as a result of their involvement with other issuers.
These risk factors and others relating to the Company are discussed
in greater detail in the "Risk Factors" section of the Company's
Annual Report on Form 20-F and in the Management's Discussion and
Analysis for the six months ended June 30,
2019 (copies of which may be obtained at www.sedar.com or
www.sec.gov). In particular, in addition to the specified criteria
for continued listing, Nasdaq also has broad discretionary public
interest authority that it can exercise to apply additional or more
stringent criteria for the continued listing of the Company's
common shares, or suspend or delist securities even if the
securities meet all enumerated criteria for continued listing on
the Nasdaq Capital Market. The Nasdaq could use this discretionary
authority at any time to delist the Company's common shares. There
can be no assurance that Nasdaq will not exercise such
discretionary authority. In addition, there is no assurance that
the Company will be able to regain compliance with the minimum
market value requirement prior to expiration of the prescribed
compliance period, or if it does, that the Company will be able to
maintain such compliance as a result of the risks and uncertainties
described above. The Company has no intention and undertakes no
obligation to update or revise any forward-looking statements
beyond required periodic filings with securities regulators,
whether as a result of new information, future events or otherwise,
except as required by law.
View original
content:http://www.prnewswire.com/news-releases/neovasc-receives-nasdaq-notification-regarding-minimum-market-value-deficiency-300905615.html
SOURCE Neovasc Inc.