SINGAPORE, March 21, 2017 /PRNewswire/ -- QT Vascular Ltd., (the "Company" or "QT Vascular", and together with its subsidiaries,
The Company will use the funds to significantly strengthen the business. These funds will allow the Company to, inter alia, (a) repay existing borrowings that are due and improve its gearing ratio; (b) improve its cash flow; (c) increase production to support the increase in demand for the non-drug coated Chocolate® PTA following the announcement dated 2 February 2017 regarding its new distribution agreement with Medtronic, Inc. ("Medtronic"); and (d) for general corporate purposes such as the advancement of the drug coated Chocolate® program and the Group's strategic partnership discussions, as mentioned in the Company's previous announcements dated 26 January 2017 and 2 February 2017.
The initial S$10 million will be in the form of a capital commitment which allows the Company to drawdown funds during the 30-month term of the Agreement by, inter alia, issuing ordinary shares of the Company to GEM Global (or such persons as it may direct) and subject to share lending arrangement(s) being in placed.
The Company will control the timing and maximum amount of drawdown under this facility and has no obligation to draw on the funds on offer.
The Company has also agreed to issue 35 million warrants to GEM Global, each carrying the right to subscribe for one new ordinary share in the Company. The warrants are expected to be issued within 45 days from the date of the Agreement. The warrants will be exercisable for a period of five years from the issue date at a fixed price of S$0.10 each.
"This agreement with GEM Global continues the momentum, started with winning the legal case with AngioScore Inc. last year, and then signing a distribution agreement with Medtronic last month. It gives QT Vascular some strong alternatives as it secures funding for continued growth and development of the Company over the next few years. This capital commitment places QT Vascular in a commanding position to continue with its business and strategic partnership plans, improve the Group's cash flow and increase production to support market demand for our products," stated Eitan Konstantino, PhD, CEO of QT Vascular.
About GEM Global:
Global Emerging Markets (www.gemny.com) was founded in 1991. GEM is a USD 3.4 billion investment group having completed 372 transactions in 70 countries. The firm is an alternative investment group that manages a diverse set of investment vehicles across the world. Each investment vehicle has a different degree of operational control, risk-adjusted return and liquidity profile. Our family of funds and investment vehicles provide GEM and its partners with exposure to: Small-Mid Cap Management Buyouts, Private Investments in Public Equities (PIPEs) and select venture investments. GEM's funds include: CITIC-GEM Fund (matured in December 2015), Kinderhook Industries (GP and LP non-voting stakes), GEM Global Yield Fund LLC SCS, GEM India and VC Bank/GEM Mena Fund (GEM exited both its GP and LP stakes in these funds in 2015 and 2010 respectively).
About QT Vascular Ltd. (SGX Stock code: 5I0)
QT Vascular Ltd. together with its subsidiaries ("QT Vascular" or the "Group"), is an emerging leader in the development and commercialization of next generation minimally invasive products for the treatment of complex vascular disease. QT Vascular works closely with leading physicians and scientists from around the world to create differentiated devices that improve procedural and clinical outcomes.
QT Vascular is based in Singapore with a US subsidiary, TriReme Medical LLC ("TriReme Medical"), based in Pleasanton, California. TriReme Medical's range of percutaneous transluminal angioplasty ("PTA") and percutaneous transluminal coronary angioplasty ("PTCA") products include (i) Chocolate® PTA Balloon Catheter, (ii) Chocolate® PTCA Balloon Catheter, (iii) GliderXtremeTM PTA Balloon Catheter, (iv) GliderfleX® PTA Balloon Catheter and (v) GliderTM PTCA Balloon Catheter, all of which have the CE mark that allows them to be sold in Europe, and FDA clearance to be sold in the United States. Additionally, the GliderXtremeTM PTA Balloon Catheter has the regulatory clearance in China and Japan, while the GliderTM PTCA Balloon Catheter has the regulatory clearance in Japan. These products are sold by the Group's direct sales team and through its main distributors: (i) Medtronic, Inc.), (ii) Shandong Weigao Group Medical Polymer Co Ltd and (iii) Century Medical, Inc.
The Group's drug coated version of the Chocolate® PTA Balloon Catheter, Chocolate Touch®, and the Chocolate® PTCA Balloon Catheter, Chocolate Heart™, have the CE mark that allows them to be sold in Europe.
For more information, please visit the company website at www.qtvascular.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/qt-vascular-secures-up-to-s20-million-capital-commitment-from-gem-global-300427097.html
SOURCE QT Vascular Ltd.
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