I would like to remind everyone that I wrote two articles see here and here prior to this one regarding Neovasc (NASDAQ:NVCN). Many thought I should hide under a rock, seeing that I called Neovasc worthless just hours before Boston Scientific Corp. (NYSE:BSX) invested in them. As it turns out, I have been correct in everything I’ve written so far. Even though I still believe that both the Tiara and Reducer work, that’s worthless to the common shareholder.
When a company’s management is found guilty of fraud, good things don’t come from it. I tried explaining to everyone that Boston Scientific only wanted to purchase the tissue business from Neovasc. They needed to in order to protect their own valve studies (all of these things are more thoroughly explained in my previous articles, linked to above). After being brilliantly forced into also buying some shares of Neovasc stock, the public took this as a sign that Boston Scientific actually wanted to invest in the company. I hope that everyone now sees that Boston Scientific did not invest in this last round of financing. This is a company that paid $75 million for a tissue business that was worth about $3 million.
Now there is a $65 million financing in which they are taking no part; this proves my earlier point. This would also mean that they aren’t looking to buy it out. From what I can tell, Dr. Frost, who I personally know, didn’t touch this deal either. I also noticed that Leerink did not do the banking deal. I can only imagine that Leerink’s internal affairs asked them to stop dealing with Neovasc once the appellate court agreed that management was guilty of fraud, in addition to the fact that Leerink simply doesn’t do deals that are this horrifying. Canaccord Genuity Inc. acted alone on this banking deal.
I have personally participated in approximately 100 private deals in my lifetime. I do admit that I have done some that many would call a “toxic” deal or financing. Let me make it clear that I certainly…