Vapotherm Completes Strategic Merger to Enhance Growth

Author: Dominic Sanders Updated: 09-20-2024 10:39 AM

Vapotherm Completes Strategic Merger

Vapotherm, Inc. (OTCQX: VAPO) has officially announced the successful closing of its merger with a newly-established entity backed by Perceptive Advisors, LLC. This merger marks a significant step for the Company, as it consolidates assets and resources to strengthen its innovative respiratory technology offerings.

Details of the Merger Agreement

Earlier in the summer, Vapotherm disclosed that it had entered into a definitive merger agreement with Perceptive Advisors, a prominent health care investment firm. This partnership enables Vapotherm to access new financial resources that will foster growth and facilitate the development of its technologies aimed at respiratory support.

Financial Commitment and Debt Conversion

As part of the merger deal, existing lenders, as well as investment affiliates managed by SLR Capital Partners, established a framework for financial support. Approximately $83 million of term debt will be converted into preferred equity within the new entity. Simultaneously, Perceptive Advisors will inject $50 million in new preferred equity to bolster Vapotherm's capital structure. Remarkably, it is noted that SLR will retain about $40 million of term debt after the merger.

Impact on Stock Trading

With the closing of this important merger, Vapotherm has requested the delisting of its common stock from the OTCQX market. Alongside this administrative change, the trading of Vapotherm's common stock has been suspended, symbolizing a pivotal transition into a new phase for the company.

Legal Representation During the Merger

The legal aspects of the merger were expertly managed by Cooley LLP representing Perceptive, while Latham & Watkins LLP represented SLR Capital. In addition, Scalar, LLC served as financial advisors to the Special Committee overseeing the merger process, and Ropes & Gray LLP provided legal counsel to Vapotherm.

About Vapotherm

Vapotherm, Inc. stands out in the respiratory technology sector, creating advanced systems designed to deliver non-invasive support to patients facing various breathing disorders. The Company has treated over 4.5 million patients using its innovative high velocity therapy systems. The combination of warm, humidified breathing gases in its systems reduces discomfort for patients and simplifies their treatment process, allowing them to eat, speak, and take medication while receiving care.

Benefiting Patients with Innovative Technology

The high velocity therapy (HVT) technology from Vapotherm is pivotal for addressing respiratory distress, catering specifically to symptoms like hypercapnia and hypoxemia. The ease of use and patient comfort have made Vapotherm's therapy a preferred choice among healthcare providers for effective respiratory management.

Investor Relations Contacts

For further inquiries, investors can reach out to John Landry, SVP & CFO, directly at +1 (603) 658-0011. Though email contact has been omitted for privacy, Vapotherm encourages interested parties to connect for more information on this exciting new chapter.

Frequently Asked Questions

What prompted Vapotherm's merger?

The merger aimed to strengthen Vapotherm's financial position and enhance the development of its innovative respiratory technologies.

Who are the key investors in the new entity?

Perceptive Advisors, LLC is a primary investor providing significant funding as part of the merger agreement.

What is Vapotherm's technology focused on?

Vapotherm specializes in advanced respiratory support technology for patients with both chronic and acute breathing issues.

How has Vapotherm's stock trading been affected?

Following the merger, Vapotherm has suspended trading and requested the delisting of its common stock from the OTCQX market.

Who provided legal counsel during the merger?

Cooley LLP, Latham & Watkins LLP, and Ropes & Gray LLP were among the firms involved in providing legal counsel throughout the merger process.

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Vapotherm Completes Strategic Merger to Enhance Growth