QT Vascular secures US$12m convertible bond funding

QT Vascular, a developer of minimally invasive products for the treatment of vascular diseases, has entered into an agreement with ICH Gemini Asia Growth Fund Pte Ltd (ICH Gemini) and three individual investors for a US$12 million convertible bond investment.

This funding will allow QT Vascular to focus more resources on developing its drug-coated chocolate platform further, the group said in a statement on Wednesday.

The 8 per cent coupon convertible bonds will have a two-year maturity period and can be converted into ordinary shares at S$0.192 per share based on and subject to the terms of the agreement.

The conversion price of S$0.192 represents an 8.5 per cent premium over QT Vascular's closing price of S$0.177 on Tuesday. The bonds can be converted at any time at the discretion of the investors, based on and subject to the terms of the agreement.

The conversion and/or redemption price in the event of either the sale of QT Vascular and/or all or any of its subsidiary, or the sale of a major asset or business of the group, at a price equal to or more than S$100 million, within a two-year maturity period, shall be determined based on the conditions set out in the agreement, depending on whether the qualifying exit event occurs.

As at end-March 2015, QT Vascular has an unaudited net cash balance of US$9.7 million.