Vancouver's Medical Ventures Corp. (TSX-V:MEV) has acquired Israel-based B-Balloon Ltd. and Neovasc Medical Ltd. in a deal worth $26 million.
The acquisition of both companies will increase Medical Ventures' products under development. B-Balloon is developing devices used to treat lesions in coronary and peripheral arteries, while Neovasc is developing a specialized stent to treat refractory angina.
The deal is being partially financed by Phillip Frost, former CEO of IVAX Corp., which was acquired in 2006 by Teva Pharmaceuticals for US$9.9 billion. Frost is investing $6 million as part of the deal. Following the deal, Alexei Marko, Medical Ventures' current president and chief operating officer, will become president and CEO. Current CEO Paul Geyer will remain as chair.
Medical Ventures will also be consolidating its common shares, at 20 old shares for one new share, to meet minimum share price requirements to be listed on the American Stock Exchange.
The deal is expected to close in late April, subject to customary closing conditions, as well as shareholder and regulatory approval. Medical Ventures' share price range during the past week: between $0.09 and $0.11; 52-week high: $0.30; 52-week low: $0.065.