NASDAQ, TSX: NVCN
VANCOUVER, Jan. 14, 2019 /CNW/ - 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 bid price requirement
set forth in Nasdaq Rules for continued listing on the Nasdaq Capital Market. Nasdaq Listing Rule 5550(a)(2) requires listed
securities to maintain a minimum bid price of US$1.00 per share, and Listing Rule 5810(c)(3)(A)
provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30
consecutive business days. Based on the closing bid price of the Company's common shares for the 30 consecutive business days
from November 28, 2018, the Company no longer meets the minimum bid price 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)(A), the Company has been provided 180 calendar days, or until July 15, 2019, to regain compliance
with Nasdaq Listing Rule 5550(a)(2). To regain compliance, the Company's common shares must have a closing bid price of at least
US$1.00 for a minimum of 10 consecutive business days. In the event the Company does not regain compliance by July 15, 2019, the
Company may be eligible for additional time to regain compliance or may face delisting.
The Company intends to monitor the closing bid price of its common shares between now and July 15,
2019 and intends to cure the deficiency within the prescribed compliance period. As described in the Company's press
release issued January 4, 2019, the Company must also regain compliance with the Nasdaq minimum
market value requirement by July 2, 2019, and may be eligible for additional time to regain
compliance or face delisting if it fails to do so by that date. The Company expects that its common shares will continue to be
listed and trade on the Nasdaq Capital Market during these compliance periods.
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 bid
price and minimum market value requirements within the prescribed grace periods, the Company's possible eligibility for
additional time to regain compliance with such requirements upon expiration of the prescribed compliance periods, the Company's
expectation that its common shares will continue to be listed and trade on the Nasdaq Capital Market during the prescribed
compliance periods 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, 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,
which could affect their market price and liquidity; risks relating to the warrants (the "Warrants") and senior secured
convertible notes (the "Notes") issued pursuant to the November 2017 underwritten public offering
and concurrent private placement (together, the "2017 Financings"), 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 Warrants and Notes issued pursuant to
the 2017 Financings, 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 exercise of Warrants or conversion of Notes issued pursuant to the 2017 Financings, which may encourage
short sales by third parties; 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 Series C warrants
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 Management's Discussion and Analysis for the quarter ended September 30, 2018 (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 bid price and minimum market value
requirements prior to expiration of the prescribed compliance periods, 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.
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SOURCE Neovasc Inc.
View original content: http://www.newswire.ca/en/releases/archive/January2019/14/c5146.html