Vapotherm Inc has closed a merger with a newly formed entity funded by health care investment firm Perceptive Advisors, LLC.

RT’s Three Key Takeaways:

1. Vapotherm has completed a merger with an entity organized and funded by Perceptive Advisors, LLC, aimed at bolstering the company’s financial health and growth strategy.
2. As part of the merger, Vapotherm’s existing lender, SLR Capital Partners, converted $83 million of debt into preferred equity, while Perceptive Advisors invested $50 million in new capital.
3. Following the merger, Vapotherm’s common stock trading was suspended on OTCQX, and the company has requested to delist its stock from the platform.

 Vapotherm Inc, a developer and manufacturer of respiratory technology, announced that it has closed a merger with a newly formed entity organized and funded by an affiliate of Perceptive Advisors, LLC, a health care investment firm.

In June, the company announced that it had signed a definitive agreement and plan of merger with a newly formed entity organized and funded by an affiliate of Perceptive Advisors, LLC, and its Perceptive Discovery Fund, which would result in the company going private.

Vapotherm develops non-invasive technologies for respiratory support of patients with chronic or acute breathing disorders. Vapotherm’s high-velocity therapy is mask-free non-invasive respiratory support and is a frontline tool for relieving respiratory distress—including hypercapnia, hypoxemia, and dyspnea. 

“Vapotherm has done a significant amount of work to date to ensure it is able to deliver its technology to patients in respiratory distress. We believe the company has a clear vision to expand the use of high-velocity therapy in patients in need and look forward to supporting them in their next stages of growth,” said Konstantin Poukalov, managing director and Perceptive Discovery co-head, in the June merger announcement.

Concurrently with the entry into the definitive agreement and plan of merger, the company’s existing lender, investment affiliates managed by SLR Capital Partners, agreed to convert approximately $83 million of term debt into preferred equity of the newly formed entity, and Perceptive would invest $50 million of new preferred equity capital into the business, a portion of which would be used to fund the merger consideration and make certain closing-related payments. SLR Capital Partners would retain $40 million of term debt post-closing.

Effective as of the closing of the merger, trading of Vapotherm’s common stock has been suspended on OTCQX, and Vapotherm has requested that its common stock be delisted from OTCQX.

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