Endonovo Signs Definitive Agreement to Sell SofPulse® Brand Business and IP to SofPulse Inc. for a minimum of $50 Million

Rhea-AI Summary

Endonovo Therapeutics, Inc. (OTCQB: ENDV) has signed a definitive agreement to sell its SofPulse® business and medical IP to SofPulse, Inc. for a minimum of $50 million. SofPulse, Inc. aims to conduct a capital raise of up to $500,000 through a 506 offering tailored for accredited investors. The company plans to explore growth opportunities and expand its revenue to approximately $100 million by 2025.

Positive

• Signing a definitive agreement for the sale of the SofPulse® business and medical IP to SofPulse, Inc.
• Anticipated capital raise of up to $500,000 through a 506 offering tailored for accredited investors
• Strategic vision to expand revenue to approximately $100 million by 2025

Negative

• The purchase price for the SofPulse® assets is not yet determined, potentially causing uncertainty for shareholders
• The sale's completion is subject to customary regulatory approvals and satisfaction of other closing conditions

Los Angeles, CA, Dec. 04, 2023 (GLOBE NEWSWIRE) -- Endonovo Therapeutics, Inc. (OTCQB: ENDV), a commercial-stage developer of wearable products for pain relief, general wellness, and wound curatives marketed under the SofPulse^® brand name, announced the signing of a definitive agreement for the sale of the SofPulse^® business and medical Intellectual Property (IP) to SofPulse, Inc.. ENDV is expected to receive the greater of $50 million or a price to be determined by a qualified third party's asset valuation acceptable to the Endonovo board. It was further agreed, that SofPulse, Inc. will prepare to fulfill the regulatory requirements for a NASDAQ listing following the sale's completion.

To fuel SofPulse, Inc. operations, the company aims to conduct a capital raise of up to $500,000 through a 506 offering tailored for accredited investors. At a pre-money valuation of $10 million and shares priced at $2.50 per share, the capital raise is anticipated to support further development and growth.

"The acquisition of the SofPulse^® assets is a major step in the ongoing transformation of the SofPulse^® brand, as we execute our strategic priorities, intensifying our focus and augments the value for all our shareholders.": commented, Ira Weisberg, President of SofPulse, Inc.

Valuation

In 2018, the ENDV-valued assets to be purchased by SofPulse, Inc. were valued at $75 million by a third-party valuation firm. As a condition of the announced sale of the SofPulse^® assets, it was agreed that they would update the previous valuation with a qualified third party acceptable to both the Endonovo’s board and SofPulse, Inc., to establish the purchase price.

Upon signing of the definitive agreement, the sole ENDV board member shall receive super majority voting rights in preferred shares until the entire acquisition price is fulfilled.

Stock Issuance to Endonovo Shareholders

As consideration for the purchase from Endonovo, SofPulse Inc. shall issue $50 million in restricted stock, priced at $5.00 per share. Approximately 80% of the issuance shall be issued ENDV’s shareholders for this transaction, either as a stock dividend or through an alternative mechanism.

In addition to the stock issuance, SofPulse, Inc. has agreed to pay ENDV any additional sum assessed by a third-party valuation report (estimated to be between $50,000,000 to $100,000,000). This payment will initially be paid through a senior note which can be paid in cash or marketable securities listed on NASDAQ after the third-party evaluation concludes.

ENDV will continue the operations of its mergers and acquisitions division, its telehealth division (which SofPulse has agreed to be a customer with a five-year contract), and the further development of its non-medical device business.

Purchase Price Settlement and Capital Raise

The remaining purchase price owed to ENDV will be resolved through a secured promissory which will be convertible into NASDAQ listed marketable securities at the sole discretion of the Seller.

The transaction is anticipated to conclude on December 31, 2023, pending the customary regulatory approvals and satisfaction of other closing conditions. These include the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act.

Future Outlook and Expansion Plans

Upon acquisition, SofPulse, Inc. is set to explore an assortment of growth opportunities. The company's strategic vision encompasses numerous initiatives aimed at swift and substantial revenue expansion.

"By expanding SofPulse^® VA and Department of Defense contracts through the Federal Supply Schedule, developing a comprehensive telehealth platform through Endonovo’s technology, growing both domestic and international surgical and pain management markets, alongside robust research and development strategies, SofPulse Inc. is strategically positioned to leverage the commercialization of SofPulse^® brand assets and IP. Focusing on sales and marketing efforts to expand these programs and venturing into new consumer markets, SofPulse^® is geared towards reaching annualized revenues of approximately $100 million by 2025. ": Weisberg concluded.

About Endonovo Therapeutics, Inc.

Endonovo Therapeutics is currently structured into two divisions: Legacy – a commercial-stage developer primarily of noninvasive wearable Electroceuticals^® therapeutic devices for pain relief, general wellness, and wound curatives with many of its products marketed under the SofPulse^® brand name; and its Build Up Strategy – acquiring complementary specialty service providers of profitable biotechnology and specialty construction companies.

Safe Harbor Statement

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, trends, analysis, and other information contained in this press release including words such as "anticipate", "believe", "plan", "estimate", "expect", "intend" and other similar expressions of opinion, constitute forward-looking statements. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date after the date of this press release.

Investor Relations Contact:
Endonovo Therapeutics, Inc.
Steve Barnes
(800) 701-1223 Ext. 108
sbarnes@endonovo.com
www.endonovo.com

Media Contact:
Gregory A. McAndrews
Greg McAndrews & Associates
(310) 804-7037
greg@gregmcandrews.com

FAQ

What is the latest development regarding Endonovo Therapeutics, Inc. (ENDV)?

Endonovo Therapeutics, Inc. (OTCQB: ENDV) has signed a definitive agreement to sell its SofPulse® business and medical IP to SofPulse, Inc. for a minimum of $50 million.

What is the expected capital raise for SofPulse, Inc. and how will it be conducted?

SofPulse, Inc. aims to conduct a capital raise of up to $500,000 through a 506 offering tailored for accredited investors.

What are SofPulse, Inc.'s expansion plans and revenue goals?

SofPulse, Inc. plans to explore growth opportunities and expand its revenue to approximately $100 million by 2025.