Neovasc Inc. ($NVCN) announced that it has received a stay of judgment from the United States District Court for the District of Massachusetts. The stay has been granted pending the completion of its appeal. The judgment is related to a lawsuit filed by CardiAQ against Neovasc related to its Tiara™ technology. Due to the grant of stay, the plaintiff cannot cannot enforce the money judgment pending the outcome of the appeal.
The stay, however, requires Neovasc to deposit US$70 million into a joint escrow account. The company is also obligated to enter into a general security agreement related to the remaining damages awarded by the court. Neovasc plans to appeal the validity of the award. It also plans to appeal the ruling on inventorship to the United States Court of Appeal for the Federal Circuit.
Neovasc recently announced regaining the compliant with NASDAQ listing requirements. The company was notified by NASDAQ on July 25, 2016 that it does not meeting the requirements related to the minimum bid price. On December 19, 2016, Neovasc was notified by NASDAQ about regaining the compliance with the requirements.
The company stock has performed remarkably well in the past three months, following disappointing performance earlier this year. The stock declined 48% in the past one year. However, during the preceding three months, it gained 241%, partially wiping out excessive decline it had faced earlier.