Endonovo Therapeutics to Acquire Rio Grande Neurosciences Inc.

Endonovo Therapeutics Inc., a developer of bioelectronic devices and medicines, is acquiring 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 $21.5 million deal is expected to close within the third quarter (ending Sept. 30);  Endonovo has paid $500,000 towards the purchase price through the issuance of a note.
 
Endonovo will be acquiring RGN and all of its assets including a U.S. Food and Drug Administration (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 consists 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 percent royalty on the sale of RGN commercialized products and assuming its outstanding senior secured debt.
 
“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,” said 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.”
 
RGN’s portfolio of non-invasive brain stimulation technologies includes FDA-cleared devices for the treatment of post operative pain and edema, which is currently being adapted for the treatment of neuro-inflammatory conditions, including traumatic brain injury, acute concussion, post concussion syndrome and multiple sclerosis; and multi-coil Transcranial Magnetic Stimulation (rTMS) technology for the treatment of resistant major depressive disorder (MDD). RGN submitted an FDA 510(k) pre-market notification for rTMS technology for the treatment of MDD in March. Furthermore, RGN’s portfolio of technologies also includes closed-loop Transcranial Electrical Stimulation (cl-TES), supported by a grant from the U.S. Department of Defense for enhancing learning.
 
Steven Gluckstern, Chairman and CEO of RGN, who will become executive chairman of Endonovo Therapeutics, said, “We are very excited how the combined entities will lead the way for the development and adoption of this new class of therapies. This is an incredible opportunity of our non-invasive Electroceuticals technology. By combining our R&D and clinical development team with Endonovo’s technology and management team to develop both of our non-invasive approaches to the treatment of inflammatory conditions in vital organs and neurological disorders we will become a dominant player in the non-invasive therapeutic arena.”
 
Endonovo Therapeutics Inc. is a Woodland Hills, Calif.-based biotechnology company developing bioelectronic devices and medicines. Endonovo’s Immunotronics platform is a non-invasive, non-implantable bioelectronic device for treating/preventing vital organ failure through the reduction of inflammation and cell death and the promotion of regeneration. Endonovo’s Cytotronics platform provides for a method of expanding and optimizing the therapeutic potential of stem cells using simulated microgravity and Time-Varying Electromagnetic Fields (TVEMF) for tissue engineering and cell therapies. The company’s initial concentration is on the treatment of acute and chronic inflammatory conditions of the liver using its proprietary Immunotronics platform.

Rio Grande Neurosciences Inc. is a Santa Fe, N.M.-based neurotechnology company focused on developing, acquiring, and licensing non-invasive brain stimulation (NIBS) therapies used to treat pathologies of the central nervous system. RGN has aggregated three of the most promising NIBS Electroceutical technologies and seeks to lead in the development of this emerging sector by conducting basic science, applied research and multiple clinical trials with top-tier academic and commercial collaborators. RGN’s portfolio currently includes: repetitive multi-coil Transcranial Magnetic Stimulation (rTMS), targeted Pulsed Electromagnetic Field therapy (tPEMF), and closed-loop Transcranial Electrical Stimulation (cl-TES).