Medical Ventures, a medical devices company specializing in products for the vascular and surgical markets, has signed an agreement to acquire two vascular product development companies, B-Balloon and Neovasc Medical.
Neovasc has developed a specialized stent for the treatment of refractory angina, and B-Balloon is developing devices used to treat ostial and bifurcation lesions in coronary and peripheral arteries, according to Vancouver, British Columbia-based Medical Ventures.
The two acquisitions are both early-stage life sciences companies supported by Peregrine Ventures of Yehuda, Israel.
Phillip Frost, MD, supports the acquisition, both as a shareholder of the companies being acquired and as a financier for Medical Ventures concurrently with the acquisitions. Frost, chair of Peregrine’s investment committee, is also CEO and chair of Opko Health.
Frost also heads the Frost Group, a Miami, Fla.-based private equity firm, which acted as the lead investor in an aggregate of $6 million in the related financing, for approximately 10% of Medical Ventures’ common shares (post-acquisition).
As part of the transactions, Medical Ventures said it will consolidate its outstanding 111 million shares, at 20 old shares for one new share, such that the Frost-led financing will be at a price of $4 per share.
Medical Ventures also said that this represents a 100% premium to the current market for Medical Ventures shares. Medical Ventures said it expects to issue between approximately 5.8 and 6.8 million common shares for each of B-Balloon and Neovasc, which will bring its total capitalization to between 19 and 22 million shares, including the $6 million financing.