Medical Ventures acquires two vascular device developers

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.

Around the web

Richard Heller III, MD, RSNA board member and senior VP of policy at Radiology Partners, offers an overview of policies in Congress that are directly impacting imaging.
 

The two companies aim to improve patient access to high-quality MRI scans by combining their artificial intelligence capabilities.

Positron, a New York-based nuclear imaging company, will now provide Upbeat Cardiology Solutions with advanced PET/CT systems and services.