Innovere completes sale of all of its shares to Hawk Capital

On January 23, 2025, Innovere Medical Inc. (“Innovere”) completed the sale of all of its shares to Hawk Capital (Canada) Inc. (“Hawk Capital”) by way of credit bid and assumption of certain indebtedness.

On November 5, 2024, Innovere sought and obtained an order from the Ontario Superior Court of Justice (Commercial List) (the “Court”) for creditor protection under the Companies' Creditors Arrangement Act (Canada) (the “CCAA”). The transaction was a part of a court-supervised sale and investment solicitation process (“SISP”) announced on November 15, 2024. Ernst & Young Inc. was appointed as monitor during the proceedings.

Along with the announcement that it had obtained creditor protection, Innovere announced that it entered into a term sheet with Hawk Capital for a debtor-in-possession financing facility (the “DIP Facility”), consisting of a credit facility of up to a maximum principal amount of C$900,000. The DIP Facility was used to finance Innovere’s working capital requirements and the implementation of the restructuring contemplated in the CCAA proceedings.

In addition to the DIP Facility, Hawk Capital submitted, as a bid in the SISP, a subscription agreement in which Hawk Capital agreed to acquire all of Innovere’s shares for a credit bid of C$900,000 plus other consideration (the “Subscription Agreement”). The Subscription Agreement received approval by the Court on January 13, 2025, and ultimately closed on January 23, 2025.

The successful completion of the transaction concluded Innovere’s court-approved SISP. The acquisition marks a significant milestone for Innovere and the advancement of its Innovision® system. Hawk Capital’s strategic acquisition is expected to invigorate Innovere’s operations and contribute to the continued development of solutions that enhance patient experience during the MRI scanning process.

Further information can be found on Newswire Canada’s website.

Innovere is a medical device company based in Markham, Ontario, that is focused on developing the Innovision^® system—technology designed to reduce the anxiety and discomfort that patients experience when they undergo magnetic resonance imaging (MRI) exams. It implements a state-of-the art, anti-claustrophobic display and bone conduction speakers into the MRI experience to enable patients to watch entertainment and other content during the scanning process.

Hawk Capital is a Toronto-based financial services company specializing in investment management and advisory services.