QT Vascular secures US$12m convertible bond funding

Singapore

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

This funding will allow QT Vascular to focus more resources on further developing its drug-coated Chocolate angloplasty balloon platform, which lowers acute trauma and is used to treat patients' coronary arteries, the group said in a statement.

QT Vascular is working towards obtaining the necessary regulatory approvals for the product, particularly the Food and Drug Administration approval. 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, QT Vascular said. As at end-March, QT Vascular had an unaudited net cash balance of US$9.7 million.

"Healthcare spending across the globe is rising, particularly in innovative solutions that can improve lives and be administered efficiently," the company said. "Pharmaceutical and healthcare-related companies with products that can improve clinical outcomes and lower overall healthcare costs will benefit from this trend."

On Wednesday, the counter closed trading up 2.26 per cent at S$0.181.