Business
Endonovo Therapeutics Announces Binding Letter of Intent to Acquire Rio Grande Neurosciences, Inc.
Endonovo Therapeutics Announces Binding Letter of Intent to Acquire Rio Grande Neurosciences, Inc..
About this update from Endonovo Therapeutics, Inc.
[{"type":"text","content":"\n \n \n Endonovo Therapeutics Announces Binding Letter of Intent to Acquire Rio Grande Neurosciences, Inc.\n \n \nEndonovo Therapeutics Announces Binding Letter of Intent to Acquire Rio Grande Neurosciences, Inc.\n\nAcquisition of RGN's Electroceutical(TM) Product Portfolio and Intellectual Property\n\n \n LOS ANGELES, CA--(Marketwired - Jul 11, 2016) - Endonovo Therapeutics, Inc. (OTCQB: ENDV) -- a developer of bioelectronic devices and medicines, announced today it has executed a binding letter of intent (LOI) to acquire Rio Grande Neurosciences, Inc. (RGN), a privately-held clinical stage developer of non-invasive Electroceuticals™ for the treatment of neuro-inflammation and central nervous system diseases and disorders. The LOI is binding, but subject to the execution of a definitive purchase agreement, shareholder approvals from both companies and Endonovo raising additional capital. The parties expect to sign a definitive agreement within the third quarter ending September 30, 2016 and close at the same time or shortly thereafter. Endonovo has paid $500,000 towards the purchase price through the issuance of a note.\n Pursuant to the LOI, Endonovo will be acquiring RGN and all of its assets including an FDA-cleared device for treating pain and edema, a proprietary multi-coil rTMS System with pending 510(k) application, and Multiple Therapeutic Clinical Studies in Neurological Diseases and Disorders. The aggregate purchase price of $21.5 million, consisting of $1.5 million in cash, approximately $15 million in Endonovo common stock, and approximately $5 million in Endonovo common stock warrants. Endonovo will also be committed to paying RGN a 10% royalty on the sale of RGN commercialized products and assuming its outstanding Senior Secured Debt.\n \"We believe this acquisition will significantly increase Endonovo's trajectory as we continue developing our non-invasive treatments for acute inflammatory conditions in vital organs,\" stated Endonovo Chairman and CEO, Alan Collier. \"We are impressed with Rio Grande Neuroscience's scientist team and their collective ability to build a portfolio of cutting edge treatments utilizing BioElectronics medicine. The combined company creates greater shareholder value for both RGN and Endonovo and will further establish Endonovo at the forefront of bioelectronic medicine...