The SofPulse brand business is engaged in developing noninvasive wearable electroceuticals therapeutic products for pain relief, general wellness, and wound curatives
Endonovo Therapeutics to sell its SofPulse brand business which makes wearable products for pain relief and others. (Credit: Towfiqu barbhuiya on Unsplash)
Endonovo Therapeutics (ENDV) has signed a definitive agreement to divest its SofPulse brand business and medical intellectual iroperty (IP) to SofPulse, Inc. for a price of at least $50m.
In January 2023, Endonovo Therapeutics said that it will spin off its medical device division as a listed public company, which eventually took the name SofPulse, Inc.
The SofPulse brand business is engaged in developing noninvasive wearable electroceuticals therapeutic products for pain relief, general wellness, and wound curatives.
Endonovo Therapeutics is anticipated to receive the greater of $50m or an amount determined by a qualified third party’s asset valuation that is accepted by the company’s board.
Upon completion of the sale, SofPulse will start preparations for fulfilling all regulatory requirements for a NASDAQ listing.
Through a 506 offering designed for authorised investors, SofPulse intends to raise $500,000 in funds to support its operations.
With shares valued at $2.5 per share and a pre-money valuation of $10m, Endonovo Therapeutics expects that the capital raise will facilitate additional development and expansion.
SofPulse president Ira Weisberg said: “The acquisition of the SofPulse assets is a major step in the ongoing transformation of the SofPulse brand, as we execute our strategic priorities, intensifying our focus and augments the value for all our shareholders.”
In 2018, a third-party valuation firm valued the assets that SofPulse agreed to buy at $75m.
Upon completion, the sole member of Endonovo Therapeutics’ board will obtain super majority voting rights in preferred shares and this will continue until the full acquisition price is paid.
Following the acquisition, SofPulse intends to assess a range of growth opportunities. The company’s strategy includes several activities targeted at quick and significant revenue growth.
On the other hand, Endonovo Therapeutics plans to continue the operations of its mergers and acquisitions division, its telehealth business, and the further expansion of its non-medical device division.
Weisberg said: “Focusing on sales and marketing efforts to expand these programmes and venturing into new consumer markets, SofPulse is geared towards reaching annualised revenues of approximately $100m by 2025.”