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Endonovo Therapeutics Enters into $10 million Equity Line Agreement with Cavalry Fund
Endonovo Therapeutics Enters into $10 million Equity Line Agreement with Cavalry Fund.
About this update from Endonovo Therapeutics, Inc.
[{"type":"text","content":"\n Agreement Provides Flexible Access to Funding at a Lower Cost of Capital Los Angeles, CA, May 26, 2020 (GLOBE NEWSWIRE) -- Endonovo Therapeutics, Inc. (OTCQB: ENDV) (\"Endonovo\" or the \"Company\") announced today it has executed a new Equity Line Purchase Agreement with Cavalry Fund I, LP (“Cavalry”) to sell up to $10 Million in common stock to Cavalry over a term of 24 months. Proceeds will be used by Endonovo to increase SofPulse® inventory levels to meet potential market demand, further advance sales and marketing efforts, pay down convertible notes lenders and for other general corporate purposes. Key terms under the Purchase Agreement include: Endonovo Therapeutics will control the timing and amount of any sales to Cavalry based on market price at the time of each sale;Cavalry has no right to require any sales by Endonovo Therapeutics but is obligated to make purchases when the Company desires to sell shares of its common stock to Cavalry, in accordance with the terms of the Purchase Agreement;Cavalry has agreed neither it nor any of its agents, representatives and affiliates shall engage in any direct or indirect short-selling or hedging of the Company's common stock during any time prior to the termination of the Purchase Agreement; and The agreement requires 50% of proceeds be used to pay down existing convertible note holders. Alan Collier, Endonovo CEO comments, “We are excited to establish this relationship p with Cavalry and the flexibility to potentially access capital on a cost-effective basis. By focusing on lowering costs to obtain working capital, we believe this agreement allows Endonovo to receive funding to meet our projected sales growth on favorable terms.” As of May 1, 2020, the Company had outstanding approximately $5,200,000 in variable rate convertible promissory notes, the holder of one of these notes with a balance of approximately $283,000 has been paid in full and three lenders holding approximately $4,561,000 in variable rate convertible notes have entered into Note Modification and Forbearance Agreements, whereunder they have agreed to waive prior defaults, waive certain payment premiums and not to convert their notes into free trading stock under Rule 144 under the Securities Act of 1933, as amended (the “33 Act”), provided that the Company is making ...