MicroPort CardioFlow Medtech (02160.HK) Announces Additional Investment of Approximately USD 2.48 Million in Valcare Inc.

MicroPort CardioFlow-B(02160) announces that, pursuant to an investment agreement recently entered into between Valcare Inc. ("Valcare") and the Company, the Company has agreed to make an additional investment of approximately US$2.4825 million in Valcare, subject to the terms, provisions and conditions set forth in a Simple Agreement for Future Equity. The amount of the additional investment was determined through arm's length commercial negotiations, taking into consideration factors such as market dynamics and the funding required for Valcare's research and development programs. Pursuant to the Simple Agreement for Future Equity, upon completion of the additional investment, the Company shall not be entitled to any additional equity interests in Valcare, and the additional investment and the investment amount shall be treated as a prepaid investment amount for Valcare's next financing round.

It is reported that Valcare's research and development has been accelerated and has recently achieved significant progress. In December 2020, Valcare successfully completed the first-in-human transseptal delivery of the Amend™ annuloplasty ring. The Amend™ device aims to deliver standard-of-care surgical treatment via a safer and simpler catheter-based procedure. As of the date of this announcement, three successful implantations of the Amend™ system have been performed via the transseptal approach. Preliminary results demonstrate a significant reduction in MR (mitral regurgitation).

The announcement stated that the Company has consistently focused on serving the large yet underpenetrated transcatheter mitral valve (TMV) market, strategically targeting all mainstream viable transcatheter valve therapy (TVT) solutions through independent R&D and co-development with global partners, including Valcare. The primary drivers for the Company's additional investment in Valcare are the favorable outcomes from recent R&D activities, along with the business synergies and clinical collaborations generated by its pipeline products (namely, AmendTM, Corona, and Trivid). The Company believes that Valcare's pipeline products will further enrich its product offerings in China's vast, yet-to-be-tapped market. Furthermore, the Company remains optimistic about the R&D progress of Valcare's pipeline products.