Vapotherm, Inc. (OTCQX: VAPO) has announced that it has closed its merger with a newly formed entity organized and funded by an affiliate of Perceptive Advisors, LLC. On June 17, 2024, 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, a leading health care investment firm (Perceptive), and its Perceptive Discovery Fund. Concurrently with the closing of the merger, the company’s existing lender, investment affiliates managed by SLR Capital Partners (SLR) has converted approximately US$83 million of term debt into preferred equity of the newly formed entity, and Perceptive invested US$50 million of new preferred equity capital into the business, a portion of which was used to fund the merger consideration and make certain closing-related payments. SLR is retaining US$40 million of term debt post-closing.

Latham & Watkins LLP represents SLR Capital in the transaction with a transactional deal team led by New York partner Daniel Mun, Bay Area/New York partner Haim Zaltzman, Bay Area partner Dan Van Fleet, and New York counsel Jennifer Wong, with associates Tyler Miller, Gemma Zhang, Trevor Church, and Anna Tomlinson. Advice was also provided on tax matters by Los Angeles partner Eric Cho, with associate Sam Yang; on benefits matters by Washington, D.C. partner Nikhil Kumar and Washington, D.C. counsel Laura Szarmach, with associate Amulya Vadapalli; on finance matters by New York partner Larry Safran; on capital markets matters by Los Angeles partner Arash Aminian Baghai, with associate Ryan Gold; on FDA regulatory matters by Washington, D.C. partner Ben Haas, with associate Meryl Bartlett; on healthcare regulatory matters by Bay Area partner Betty Pang, with associate Yanyan Zhou; on EU regulatory matters by Paris/Brussels partner Eveline Van Keymeulen, with associate Jeanne Fabre; on intellectual property matters by Los Angeles partner Ghaith Mahmood and New York partner Jessica Cohen, with associate Zachary Shufro; on data privacy matters by Bay Area partner Robert Blamires, with associate Kathryn Parsons-Reponte; on real estate matters by New York partner Justin Elliott; on environmental matters by Los Angeles partner Aron Potash, with associate Kate Johnstone; on antitrust matters by New York partner Katherine Rocco, Frankfurt partner Max Hauser, Hamburg partner Jana Dammann, Washington, D.C. counsel Britton Davis, and Bay Area counsel Jason Daniels, with associate Helena Hofmann; on CFIUS matters by Washington, D.C. counsel Ruchi Gill; and on securities regulatory matters by New York partner Gail Neely and Washington, D.C. partners Joel Trotter and Michele Anderson.