Vapotherm Completes Strategic Merger
Vapotherm, Inc. (OTCQX: VAPO) has announced the successful completion of its merger with a newly-formed company backed by Perceptive Advisors, LLC. This merger is a major move for Vapotherm, allowing it to consolidate its assets and resources to enhance its innovative respiratory technology offerings.
Details of the Merger Agreement
Earlier this summer, Vapotherm revealed that it had signed a definitive merger agreement with Perceptive Advisors, a well-known healthcare investment firm. This partnership gives Vapotherm access to fresh financial resources, which will help fuel its growth and support the development of technologies designed for respiratory care.
Financial Commitment and Debt Conversion
As part of the merger, existing lenders and investment affiliates managed by SLR Capital Partners established a financial support framework. About $83 million in term debt will be converted into preferred equity in the new entity. At the same time, Perceptive Advisors will inject $50 million in new preferred equity, strengthening Vapotherm's financial structure. Interestingly, SLR is set to retain roughly $40 million of term debt post-merger.
Impact on Stock Trading
With this significant merger closing, Vapotherm has requested the delisting of its common stock from the OTCQX market. This administrative shift comes with the suspension of trading of Vapotherm's common stock, symbolizing a critical transition into a new chapter for the company.
Legal Representation During the Merger
Cooley LLP represented Perceptive in managing the legal aspects of the merger, while Latham & Watkins LLP handled the representation for SLR Capital. Scalar, LLC acted as financial advisors to the Special Committee overseeing the merger, and Ropes & Gray LLP provided legal counsel to Vapotherm.
About Vapotherm
Vapotherm, Inc. is a standout in the respiratory technology field, developing advanced systems that provide non-invasive support for patients with various breathing disorders. The company has treated over 4.5 million patients with its innovative high-velocity therapy systems. These systems use warm, humidified breathing gases, reducing discomfort and making treatment easier for patients, who can eat, speak, and take medication while receiving care.
Benefiting Patients with Innovative Technology
Vapotherm's high-velocity therapy (HVT) technology is crucial for managing respiratory distress, specifically in dealing with symptoms like hypercapnia and hypoxemia. The user-friendly design and patient comfort have made Vapotherm's therapy a top choice among healthcare providers for effective respiratory management.
Investor Relations Contacts
For any further inquiries, investors can contact John Landry, SVP & CFO, at +1 (603) 658-0011. While an email contact has been omitted for privacy reasons, Vapotherm encourages interested individuals to reach out for more information about this exciting new chapter.
Frequently Asked Questions
What prompted Vapotherm's merger?
The merger was designed to enhance Vapotherm's financial stability and promote the development of its innovative technologies for respiratory care.
Who are the key investors in the new entity?
Perceptive Advisors, LLC plays a significant role as a primary investor in the merger.
What technologies does Vapotherm focus on?
Vapotherm specializes in advanced respiratory support technology for patients suffering from both chronic and acute breathing problems.
How has Vapotherm's stock trading changed?
As a result of the merger, Vapotherm has halted trading and requested to delist its common stock from the OTCQX market.
Who provided legal counsel during the merger?
Legal representation during the merger involved Cooley LLP, Latham & Watkins LLP, and Ropes & Gray LLP, among others that assisted throughout the process.
