Neovasc to raise C$2 million in non-brokered private placement

The proceeds of the offering will be used for continued development of a suite of new products and to help fund continuing operations. The completion of the private placement is subject to TSX Venture Exchange approval and the execution of definitive documentation with investors.

The securities issued pursuant to the offering will be subject to a four-month hold period from the date of issuance. The private placement is led by members of the Frost Group.

Each unit consists of one common share of Neovasc stock and one-half of one common share purchase warrant of Neovasc stock. Each whole warrant will entitle the holder thereof to purchase one common share of Neovasc stock at the exercise price of C$0.30 per share for a period of one year after the closing date of the offering. All of the proceeds will be placed with company insiders.

Alexei Marko, CEO of Neovasc, said: “This financing provides us with additional operating flexibility to advance the products that we expect to be key growth drivers for Neovasc, especially our innovative Reducer stent for the treatment of refractory angina. We are pleased at the confidence in Neovasc evidenced by the participation of insiders in this financing, which strengthens our ability to execute on the focused strategy we implemented in late 2008.”