Endonovo to Spin Off Medical IP and Assets

Endonovo Therapeutics revealed plans to begin a spinoff of its medical device assets to a new company, which is being formed by its current medical division president and chief commercial officer, Ira Weisberg.
 
Weisberg will run “NewCo” independently from Endonovo and will develop commercialization initiatives utilizing its SofPulse medical assets. The company’s recently announced telehealth initiative will be included in the spinoff as well.
 
A third-party fairness opinion report will determine the amount NewCo will pay to Endonovo, which may in stock or note convertible into NewCo common stock. Endonovo aims to apply a portion of shares available through the spinoff to satisfy debt holders, and believes about 20% of shares received in the spinoff will be paid to satisfy existing debtholders.
 
Management expects on completion of the spinoff, NewCo will have a pre-money valuation of over $50 million. NewCo’s management believes it can take the company to over $100 million in sales by 2024.
 
Current Endonovo CEO Alan Collier told the press, “We want to make sure that all present and future stockholders will benefit fairly with the spin-off of IP and medical device assets. Having Ira Weisberg heading the direction and development of SofPulse is a huge benefit.
 
Weisberg added, “Having SofPulse and the opportunity to expand the commercialization of PEMF technology globally is an opportunity of a lifetime. Our plan is to position SofPulse as the standard of care for the mitigation of pain and for the treatment of the associated edema and swelling. We are excited about the future of the SofPulse devices as well as NewCo.”