VANCOUVER, BC / August 23rd, 2018 / CVR Medical Corp. (CVM.V) (TSXV: CVM) (FRANKFURT: B3BN) (OTCQB: CRRVF)  (“CVR Medical”) a Canadian listed and US based healthcare company in the medical device sector announces that it intends to complete a non-brokered private placement financing (the “Financing“) of units (each, a “Unit“) for gross proceeds of up to C$2,000,000 with a price per Unit of C$0.30 or such other price determined by CVR Medical management in compliance with TSX Venture Exchange (the “Exchange“) pricing regulations.

Each Unit will consist of one common share (each, “Share“) and one common share purchase warrant (each, a “Warrant“), with each Warrant exercisable to acquire one additional Share (each, a “Warrant Share“) at a price of C$0.36 per Warrant Share for a period of five (5) years following the closing date of the Financing (“Closing Date“).

The Warrants will be subject to an acceleration right (the “Warrant Acceleration Right”) if on any ten (10) consecutive trading days, beginning on the date that is four (4) months and one (1) day following the Closing Date, the daily closing price of the Shares on the Exchange is at or greater than C$0.50. If the Company exercises its Warrant Acceleration Right, the new expiry date of the Warrants will be the 30th day following the date on which such notice is given by the Company.

CVR Medical intends to pay finder’s fees of up to 6% in cash and 6% in finder’s warrants in connection with the Financing.  Proceeds from the Financing are expected to be used for ongoing working capital requirements relating to the development and commercialization of the proprietary subsonic, infrasonic, and low frequency sound wave analysis technology and diagnostic device designed to detect and measure carotid arterial disease, known as the CSS Device.

Completion of the Financing is subject to Exchange acceptance and all securities issued pursuant to the Financing will be subject to a hold period of four months as required under applicable securities legislation.

The securities referred to herein will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

All interested accredited investors who wish to participate may contact the Company directly at marclubow@cvrmed.com.

About CVR Medical

CVR Medical Corp. is a healthcare company that operates in the medical device industry focused on the commercialization of its disruptive, proprietary CSS Device.  The CSS device is a diagnostic tool that encompasses subsonic, infrasonic, and low frequency sound wave analysis technology.  The CSS Device is a patented device designed to detect and measure carotid arterial stenosis.  CVR is currently in pivotal clinical trials in preparation for its planned submission to the FDA.  CVR is led by an experienced and proven team of professionals with extensive healthcare, medical device, international expansion, regulatory and sales experience. CVR Medical trades on the TSX Venture Exchange under the symbol CVM.  Additional information regarding the Company can be found in our recent filings with the SEDAR.

For further information contact:

Marc S. Lubow.

Vice President Capital Markets, Investor Relations

Telephone: 904-923-4037

marclubow@cvrmed.com

 

This press release contains forward-looking information that involves various risks and uncertainties regarding future events related to the Joint Venture and the proposed Financing. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements and are not guarantees of future performance of the Company. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with commercialization of technology and the practice of medicine, (3) a change in health regulations, (4) any number of events or causes which may delay or cease commercialization and development of the Joint Venture, (5) the risk that the Company or the Joint Venture does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, and (8) other factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
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