QUEBEC CITY, Nov. 19, 2012 /CNW Telbec/ - Opsens Inc. ("Opsens") (TSXV:
OPS) is pleased to announce its first major agreement granting
distribution and other rights for its OptoWire and OptoMonitor, Opsens'
products for measuring Fractional Flow Reserve ("FFR").
Under the terms of the agreement with a Japanese-based medical company,
Opsens will receive:
US$3 M for the distribution rights for its FFR products for Japan, Korea
and Taiwan, which includes:
US$2 M at signing;
US$1 M once Opsens gets regulatory approval for its FFR devices in
US$2 M in convertible debenture, at signing.
VALIDATION FOR OPSENS' GAME-CHANGING FFR PRODUCTS
"The signing of this agreement is a major milestone for Opsens and
confirms the value of our FFR products," said Pierre Carrier, President
and Chief Executive Officer of Opsens. "Our Japanese partner witnessed
the increased depth and technical expertise we have incorporated into
our FFR products. In addition, the Japanese partner knows our team and
our patented pressure sensor very well, since they are using our
medical pressure sensor for other projects. We are pleased to be
working with them to tackle the rapidly growing FFR market."
Before entering this agreement, Opsens' FFR partner successfully
completed due diligence on Opsens' FFR products.
FFR is an index of the functional severity of a coronary stenosis that
is calculated from pressure measurements taken before and after a
narrowing of the arteries during coronography. This increasingly used
approach enables an "on the spot" diagnosis for a better assessment as
to whether a stent is an appropriate intervention to improve blood
circulation in the cardiovascular system.
"By acquiring the distribution rights for its market, our Japanese
partner recognizes the performance and quality of Opsens' FFR products,
and secures supply of this unique products once they becomes available
for sale," Carrier said.
Since announcing it was targeting the FFR market in December 2010,
Opsens has been examining opportunities to sell its products
efficiently and profitably in order to maximize shareholder value. This
agreement achieves that objective and provides a direct channel to
clinicians in northeast Asia. It is part of Opsens' strategy to supply
its FFR products worldwide.
OPSENS' OPTOWIRE TO ACCESS MARKET NEXT FISCAL YEAR
The FFR market has experienced compounded annual growth exceeding 35%
over the last several years. FFR is being recognized as the "gold
standard" for the diagnosis of the severity of coronary lesions,
leading to better outcome for patients. Opsens has embedded its
miniature fiber optic pressure sensor into an innovative guide wire
designed to navigate through the human vasculature to reach lesions
with ease. Opsens FFR product is providing technical advantages that
will enable Opsens to capture market share.
The granting of distribution rights for Japan, Korea and Taiwan, which
currently account for less that 10% of the worldwide market, is one of
several actions Opsens' management is taking to become a worldwide
medical device company.
Opsens' FFR products are in the validation stage and will be moving on
to regulatory approval to access the market in the fiscal year
beginning in September 2013.
CONVERTIBLE DEBENTURE DETAILS
Opsens also announces the closing of a private placement financing,
being a private placement financing of a Subordinated Secured
Convertible Debenture (the "Debenture") convertible in Common Shares of
Opsens for gross proceeds of US$2 M. As per the terms of the Debenture,
Opsens will receive US$2 M at signing. The Debenture bears an interest
rate of 2% annually and matures five (5) years after its issuance. The
Debenture carries a conversion privilege, at the option of the
debenture holder, into Common Shares of Opsens. If the holder elects to
convert the Debenture, the outstanding balance, including the interest,
will be converted into Common Shares of Opsens at a price equal to the
U.S. dollar equivalent of the closing price of the Common Shares on the
TSX Venture Exchange on the last trading day on which Common Shares
were traded immediately preceding the receipt by Opsens of a conversion
notice from the holder of the Debenture, subject to a minimum
conversion price of $0.50 and a maximum conversion price of $0.75 per
common share (the "Conversion Price"), provided that in the case of the
conversion of the accrued and unpaid interest, the Conversion Price
shall not be less than the minimum amount allowable under the policies
of the TSX Venture Exchange. The Debenture would also be convertible
into Common Shares at the option of Opsens, at the Conversion Price, if
the volume-weighted average closing price per Common Share for a period
of twenty days ending five days prior to the date on which the notice
of conversion shall be given (the "Current Market Price") of the Common
Shares, on the date of the notice of conversion, is at least $1.20 per
Common Share and an average daily volume of a minimum of 50,000 Common
Shares have traded during each of the twenty trading days taken into
account in the calculation of the Current Market Price.
Under applicable laws, regulations and policies, the Debenture and the
Common Shares underlying the conversion of the Debenture cannot be
sold, transferred or otherwise traded by the holder of said debentures
prior to March 20, 2013, being four months and a day after the closing
of the private placement.
About Opsens Inc. (www.opsens.com)
Opsens is a leading developer, manufacturer, supplier and installer of a
wide range of fiber optic solutions based on proprietary patented
technologies for the measurement of pressure, temperature and other
parameters. The qualities of our sensors allow us to offer measuring
instruments that are effective and durable in extreme conditions.
Opsens is using its competitive advantages to focus primarily on two
strong growth markets: oil and gas and FFR medical instrumentation.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements contained in this press release involve known
and unknown risks, uncertainties and other factors that may cause
actual results, performance and achievements of Opsens to be materially
different from any future results, performance or achievements
expressed or implied by the said forward-looking statements.
SOURCE: OPSENS INC.
For further information:
Pierre Carrier, President and Chief Executive Officer, 418.682.9996
Louis Laflamme, CPA, CA, Chief Financial Officer, 418.682.9996