Helius Medical Technologies, Inc. Announces Exploration of Strategic Alternatives
Helius Medical Technologies (Nasdaq:HSDT) has initiated a strategic alternatives review process to maximize stockholder value. The company's decision follows challenges stemming from CMS's deferral of reimbursement payment determination for the PoNS Controller and inadequate PoNS Mouthpiece pricing in October, which has restricted operational advancement and traditional financing access. B. Riley Securities has been engaged as financial advisor to explore options including acquisition, merger, reverse merger, business combination, asset sale, and licensing opportunities.
Helius Medical Technologies (Nasdaq:HSDT) ha avviato un processo di revisione delle strategie alternative per massimizzare il valore per gli azionisti. La decisione dell'azienda è stata presa a seguito delle difficoltà derivanti dal rinvio da parte del CMS della decisione sui pagamenti di rimborso per il PoNS Controller e dalla valutazione inadeguata del prezzo del PoNS Mouthpiece nello scorso ottobre, che ha limitato i progressi operativi e l'accesso al finanziamento tradizionale. B. Riley Securities è stata coinvolta come consulente finanziario per esplorare opzioni che includono acquisizioni, fusioni, fusioni inverse, combinazioni aziendali, vendite di asset e opportunità di licenza.
Helius Medical Technologies (Nasdaq:HSDT) ha iniciado un proceso de revisión de alternativas estratégicas para maximizar el valor para los accionistas. La decisión de la empresa sigue a los desafíos derivados de la postergación por parte del CMS de la determinación de pago de reembolso para el PoNS Controller y la inadecuada fijación de precios del PoNS Mouthpiece en octubre, lo que ha restringido el avance operativo y el acceso a financiamiento tradicional. B. Riley Securities ha sido contratada como asesora financiera para explorar opciones que incluyen adquisición, fusión, fusión inversa, combinación de negocios, venta de activos y oportunidades de licencia.
Helius Medical Technologies (Nasdaq:HSDT)는 주주 가치를 극대화하기 위해 전략적 대안 검토 프로세스를 시작했습니다. 회사의 결정은 CMS가 PoNS Controller에 대한 상환 지급 결정 연기를 한 것과 10월에 PoNS Mouthpiece 가격이 부적절했던 것에서 오는 도전과제에 따른 것입니다. 이는 운영 발전과 전통적인 자금 조달 접근을 제한했습니다. B. Riley Securities는 인수, 합병, 역합병, 사업 결합, 자산 매각 및 라이선스 기회 등 다양한 옵션을 탐색하기 위해 재무 자문으로 참여하고 있습니다.
Helius Medical Technologies (Nasdaq:HSDT) a lancé un processus de révision des alternatives stratégiques afin de maximiser la valeur pour les actionnaires. La décision de l'entreprise fait suite aux défis découlant du report par le CMS de la décision de remboursement pour le PoNS Controller et d'une tarification inadéquate du PoNS Mouthpiece en octobre, ce qui a restreint l'avancement opérationnel et l'accès au financement traditionnel. B. Riley Securities a été engagée en tant que conseiller financier pour explorer des options comprenant des acquisitions, des fusions, des fusions inversées, des combinaisons d'entreprises, des ventes d'actifs et des opportunités de licence.
Helius Medical Technologies (Nasdaq:HSDT) hat einen Prozess zur Überprüfung strategischer Alternativen eingeleitet, um den Wert für die Aktionäre zu maximieren. Die Entscheidung des Unternehmens folgt auf Herausforderungen, die sich aus der Aussetzung der Erstattungszahlung durch CMS für den PoNS Controller und den unangemessenen Preisen des PoNS Mouthpiece im Oktober ergeben haben, was den operativen Fortschritt und den Zugang zu traditioneller Finanzierung eingeschränkt hat. B. Riley Securities wurde als Finanzberater engagiert, um Optionen zu prüfen, die Akquisitionen, Fusionen, umgekehrte Fusionen, Unternehmenszusammenschlüsse, Veräußerung von Vermögenswerten und Lizenzmöglichkeiten umfassen.
- Proactive engagement of B. Riley Securities as financial advisor for strategic review
- Company exploring multiple value-maximizing alternatives including mergers, acquisitions, and licensing opportunities
- CMS's deferral of reimbursement payment determination limiting operational capabilities
- Inadequate pricing for PoNS Mouthpiece affecting business viability
- access to traditional financing options
- Potential indication of financial distress requiring strategic alternatives exploration
Insights
The announcement of a strategic alternatives review signals serious financial distress for Helius Medical Technologies. The company's challenges stem from critical setbacks in Medicare reimbursement decisions and pricing issues for their PoNS device, which have effectively blocked traditional financing channels. The engagement of B. Riley Securities and consideration of options including mergers, sales, or licensing deals indicates the company is exploring all possible survival strategies.
With a micro-cap valuation of just
NEWTOWN, Pa., Nov. 18, 2024 (GLOBE NEWSWIRE) -- Helius Medical Technologies, Inc. (Nasdaq:HSDT) (“Helius” or the “Company”), a neurotech company focused on delivering a novel therapeutic neuromodulation approach for balance and gait deficits, today announced it has initiated a process, in consultation with its financial and legal advisors, to explore a range of strategic alternatives focused on maximizing stockholder value.
The deferral of a reimbursement payment determination for the PoNS Controller and inadequate PoNS Mouthpiece pricing issued by CMS in October has limited the Company’s ability to advance its operations and impeded its access to traditional financing avenues.
Helius has engaged B. Riley Securities to act as a financial advisor in connection with the strategic review process. All potential strategic alternatives to maximize value, including an acquisition, merger, reverse merger, other business combination, sale of assets, licensing, and other strategic transactions, will be explored. No updates on the process are expected to be provided during the evaluation period unless and until the Board of Directors has concluded that disclosure is appropriate or required.
About Helius Medical Technologies, Inc.
Helius Medical Technologies is a leading neurotech company in the medical device field focused on neurologic deficits using orally applied technology platform that amplifies the brain’s ability to engage physiologic compensatory mechanisms and promote neuroplasticity, improving the lives of people dealing with neurologic diseases. The Company’s first commercial product is the Portable Neuromodulation Stimulator. For more information about the PoNS® or Helius Medical Technologies, visit www.heliusmedical.com.
About the PoNS Device and PoNS Therapy
The Portable Neuromodulation Stimulator (“PoNS”) is an innovative, non-implantable, orally applied therapy that delivers neurostimulation through a mouthpiece connected to a controller and it’s used, primarily at home, with physical rehabilitation exercise, to improve balance and gait. The PoNS device, which delivers mild electrical impulses to the tongue, is indicated for use in the United States as a short-term treatment of gait deficit due to mild-to-moderate symptoms from multiple sclerosis (“MS”) and is to be used as an adjunct to a supervised therapeutic exercise program in patients 22 years of age and over by prescription only.
PoNS has shown effectiveness in treating gait or balance and a significant reduction in the risk of falling in stroke patients in Canada, where it received authorization for sale in three indications: (i) for use as a short-term treatment (14 weeks) of gait deficit due to mild and moderate symptoms from stroke and is to be used in conjunction with physical therapy; (ii) for use as a short-term treatment (14 weeks) of chronic balance deficit due to mild-to-moderate traumatic brain injury (“mmTBI”) and is to be used in conjunction with physical therapy; and (iii) for use as a short-term treatment (14 weeks) of gait deficit due to mild and moderate symptoms from MS and is to be used in conjunction with physical therapy. PoNS is also authorized for sale in Australia for short term use by healthcare professionals as an adjunct to a therapeutic exercise program to improve balance and gait. For more information visit www.ponstherapy.com.
Cautionary Disclaimer Statement
Certain statements in this news release are not based on historical facts and constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws. All statements other than statements of historical fact included in this news release are forward-looking statements that involve risks and uncertainties. Forward-looking statements are often identified by terms such as “believe,” “expect,” “continue,” “will,” “goal,” “aim” and similar expressions. Such forward-looking statements include, among others, statements regarding the Company’s strategic alternative exploration process and outcome and the Company’s future operating results.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those expressed or implied by such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include uncertainties associated with the Company’s capital requirements to achieve its business objectives, availability of funds, the Company’s ability to find additional sources of funding, manufacturing, labor shortage and supply chain risks, including risks related to manufacturing delays, the Company’s ability to obtain national Medicare insurance coverage and to obtain a reimbursement code, the Company’s ability to continue to build internal commercial infrastructure, secure state distribution licenses, market awareness of the PoNS device, future clinical trials and the clinical development process, the product development process and the FDA regulatory submission review and approval process, other development activities, ongoing government regulation, and other risks detailed from time to time in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and its other filings with the United States Securities and Exchange Commission and the Canadian securities regulators, which can be obtained from either at www.sec.gov or www.sedar.com.
The reader is cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements except to the extent required by law.
Investor Relations Contact
Philip Trip Taylor
Gilmartin Group
investorrelations@heliusmedical.com
FAQ
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