News

Neovasc Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency

SmallCaps Daily December 15, 2020

219 4 minutes read

VANCOUVER and MINNEAPOLIS – (NewMediaWire) – December 14, 2020 – 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 October 30, 2020
to December 11, 2020, 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 June 14, 2021, 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 June 14, 2021, 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 June 14, 2021 and
intends to cure the deficiency within the prescribed compliance period. As
described in the Company’s press release issued December 10, 2020, the Company
must also regain compliance with the Nasdaq minimum market value requirement by
June 8, 2021, 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 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 Tiara, for the transcatheter treatment of mitral valve disease, which is
currently under clinical investigation in the United States, Canada, Israel 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 such prescribed compliance periods, the
Company’s expectation that its common shares will continue to be listed and
trade on the Nasdaq Capital Market during such 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 could cause the Company’s actual
results, performance or achievements to differ materially from those expressed
or implied by the forward-looking statements, including those described 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 three and nine months
ended September 30, 2020 (copies of which may be obtained at www.sedar.com or www.sec.gov).
These factors should be considered carefully, and readers should not place
undue reliance on the Company’s forward-looking statements. 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 or
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.