Endonovo to Spin Off its Medical Device Division

Endonovo Therapeutics Inc. is planning to spin off its current medical device division to an entity tentatively named SofPulse Inc. The new publicly-traded Delaware company will be led by Ira Weisberg, its future president and CEO.
 
As a condition of the executed letter of intent and to establish fair market value, SofPulse assets and Intellectual Property (IP) are currently being evaluated by Ocean Tomo, a part of JS Held. This acquisition is subject to the successful completion of due diligence, negotiation and execution of a definitive purchase agreement as well as receipt of all necessary regulatory approvals. Ocean Tomo provides expert opinion and consulting services for IP and intangible assets.
 
The last valuation report issued for Endonovo’s SofPulse IP and assets, completed in 2018, concluded the assets were worth $75 million. Weisberg, president of Endonovo’s medical device division, has previously estimated SofPulse Inc.’s pre-money valuation to be worth more than $50 million.
 
Endonovo’s existing Mergers & Acquisitions (M&A) division and yet-to-be formed Pulsed Electro Magnetic Frequency (PEMF) non-medical division will focus on mergers and acquisitions strategy and commercialization of the human non-medical PEMF assets. Current shareholders of Endonovo will not have their ownership in the company affected by the spinoff.
 
SofPulse Inc. is set to expand its sales and marketing programs to promote the SofPulse portfolio of commercial and clinical-stage wearable therapeutic devices and IP. The acquisition of Endonovo’s SofPulse assets and IP aligns with SofPulse Inc.’s growth plans to provide targeted non-invasive pain and edema reduction while mitigating the risks of addiction and dependence on opioids while accelerating recovery in surgical patients.
 
SofPulse Inc. plans to continue its focus on bringing PEMF technology to the global pain management market. It will also expand on current initiatives with the Department of Defense, the VA and other surgical and pain management markets. With Weisberg’s medical industry expertise of more than 25 years, SofPulse aims to revolutionize pain management and continue to improve patient outcomes.
 
“The acquisition aligns with our mission to provide innovative solutions that improve patient outcomes and support the medical community. With our sales and marketing initiatives along with resources in both domestic and international markets, we are confident that we can continue to build on the success of SofPulse,” Weisberg said.
 
A proposed move to NASDAQ is expected to increase the company’s exposure as part of a coordinated plan to solidify its position in the medical industry. Towards that end, Weisberg is assembling a team with extensive experience in the medical device industry to take SofPulse to the next level and expand its offerings. Weisberg has previously stated that the new company aims to increase sales to more than $100 million by 2024 through aggressive sales and marketing initiatives.
 
Endonovo Therapeutics is currently structured into two divisions: Legacy—a commercial-stage developer primarily of noninvasive wearable Electroceuticals therapeutic devices for pain relief, general wellness and wound curatives with many of its products marketed under the SofPulse brand name; and its Build Up Strategy—acquiring complementary specialty service providers in the construction industry.