Business
Endonovo Announces Plans for Spin-off of Medical IP and Assets
Endonovo Announces Plans for Spin-off of Medical IP and Assets.
About this update from Endonovo Therapeutics, Inc.
[{"type":"text","content":"\n New Company To Be Formed for SofPulse® Medical Device Line Los Angeles, CA, Dec. 15, 2022 (GLOBE NEWSWIRE) -- Endonovo Therapeutics, Inc. (OTCQB: ENDV) today announced plans to affect a spin-off of its medical device assets to a new company (“NewCo”) being formed by its current President and Chief Commercial Officer of its Medical Division, Ira Weisberg. Weisberg will be responsible for running NewCo independently from Endonovo and will develop commercialization initiatives through sales and marketing channels for NewCo utilizing the SofPulse® medical assets. Endonovo’s recently announced telehealth initiative will be included in the spin-off of NewCo. NewCo shall pay such amount to Endonovo as determined by a third-party fairness opinion report. The payment may be in stock or note convertible into NewCo common stock. Endonovo intends to make such filings as will allow it to make special dividends of NewCo stock to its shareholders or to structure the transaction so that the stock is received contemporaneously with the spin-off. Endonovo intends to apply a portion of the shares available through the spin-off to satisfy its present debt holders. While no firm arrangements have been made, Endonovo believes that approximately 20% of the shares received in the spin-off will be paid to satisfy its existing debtholders with the balance principally available to existing shareholders. The structure of the eventual spin-off is subject to agreements with NewCo and the existing noteholders as well as other conditions. $50 Million Projected Pre-Money Valuation Management believes that upon completion of the spin-off, NewCo will have a pre-money valuation in excess of $50 million. Additionally, Weisberg has detailed sales and marketing plans to raise working capital through equity financing to continue the commercialization of SofPulse®. All shares distributed to ENDV shareholders shall be issued on a pro rata basis. NewCo’s management believes it can take NewCo to more than $100 million in sales by 2024. NewCo will assemble an outside Board of Directors and appoint the appropriate committee members and necessary infrastructure requirements to prepare itself to become a NASDAQ listed company. Current Endonovo CEO Alan Collier said in making the announcement: “We want to make sure that all prese...