MicroPort NeuroTech Announces New Investment Round and Submits Prospectus

Gelonghui November 11thMicroPort Medical (00853.HK) announced that on November 10, 2021, the target company, subsidiary (i.e., MicroPort Scientific Investment Ltd), guarantors of the target subsidiary, and these investors entered into the agreement, according to which: (a) these investors agreed to subscribe for 2.0325 million newly issued Series A preferred shares at a total consideration of approximately US$31.26 million; and (b) the subsidiary agreed to transfer 7.7204 million ordinary shares of the target company to these investors at a consideration of approximately US$118.7 million. Accordingly, immediately following the completion of these transactions, the transferred ordinary shares of the target company will be reclassified and redesignated as Series A preferred shares.

The target company (i.e., Microport NeuroTech Limited) is an exempted limited company duly incorporated and existing under the laws of the Cayman Islands. It is primarily engaged in the research, development, manufacturing, and commercialization of medical devices for the treatment of neurovascular diseases (including hemorrhagic stroke, cerebral atherosclerosis, and acute ischemic stroke) and access-related medical devices. These investors include CICC Healthcare Investment Opportunities V Limited (Investor A, whose general partner is an indirect subsidiary of CICC), Nectar Neuro Limited (Investor B, managed and controlled by Helix Capital ZHEYI Limited), BVF III(BVI) Holding L.P. (Investor C, wholly owned by Wenbo Xu), Biolink Healthcare Investment Limited (Investor D, with Hu Yibin holding 100% voting rights), Star Wave Ventures Limited (Investor E, wholly owned by Gao Bin), and Always Enterprises Limited (Investor F).

The announcement stated that the capital increase and the introduction of new investors will provide the target group with the necessary funds to further strengthen its product development and market expansion, thereby helping the target group better enhance its market competitiveness, broaden market resources, and promote rapid development. At the same time, the capital increase and the introduction of new investors will also help further enhance the group's brand influence and market value.