Los Angeles, CA, Jan. 19, 2023 (GLOBE NEWSWIRE) -- Endonovo Therapeutics, Inc. (OTCQB: ENDV) announced today details regarding the planned spin-off of its medical device assets to a newly formed Delaware company, SofPulse, Inc.
SofPulse, Inc. Will Operate Independently
SofPulse, Inc. will operate independently from Endonovo and focus on developing commercialization initiatives for its SofPulse® medical device line. The spin-off will also include Endonovo's recently-announced telehealth initiative.
The new company will be overseen by Ira Weisberg, the current President and Chief Commercial Officer of Endonovo's Medical Division, who will serve as CEO/President. He will oversee preparations for listing SofPulse, Inc. on the NASDAQ exchange.
Valuation
The planned spin-off of SofPulse, Inc. is expected to be completed later in 2023. SofPulse, Inc. will pay an amount to Endonovo as determined by a third-party valuation. Endonovo believes, as previously announced, that approximately 20% of the shares received in the spin-off will be paid to satisfy its existing debtholders with the balance principally available to existing shareholders. The spin-off is expected to result in a pre-money valuation of SofPulse, Inc. in excess of $50 million.
Endonovo is currently reviewing proposals from independent financial advisors and respected medical device valuation firms to analyze the fairness of the proposed transaction to protect stockholder interests.
Plans to Become NASDAQ Listed
SofPulse, Inc.'s management will assemble an outside Board of Directors, appoint the appropriate committee members and complete infrastructure requirements to prepare for listing on NASDAQ.
The newly formed company has recently initiated an aggressive “Go To Market” strategy aimed to take the company to over $100 million in sales by the end of 2024.
Weisberg said in making today’s announcement: “As revenues grow and we expand operations, we are committed to uplisting to a major stock exchange after the spin-off occurs. Our present ‘Go To Market’ strategy, combined with aggressive sales and marketing initiatives, are beginning to yield positive results that make our revenue goals attainable.”
Benefits of Listing on NASDAQ
From Nasdaq.com: “Since 2005, more than 400 companies worth $2.2 trillion in market cap have switched to NASDAQ. Leading innovators choose NASDAQ for capital raising, shareholder engagement and intelligence tools. NASDAQ features stringent listing requirements and regulatory oversight that stock analysts and the investing public highly regard. The electronic process for trading allows investors to trade through a transparent and computerized system. NASDAQ’s diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence.”
“We believe that moving to NASDAQ will give our company greater exposure, enhanced visibility and increased legitimacy amongst the investment community.” said Weisberg.
SofPulse® -- A Viable Alternative to Opioids
SofPulse Inc. will feature SofPulse® medical devices designed to provide a viable alternative to opioid pain management for surgical patients.
Weisberg pointed out: “We believe that through the development of our telehealth initiative we will provide non-pharmacological surgical pain solutions as well as alternative pain management options through its direct-to-consumer sales of prescription and non-prescription uses of SofPulse®. Focusing on drug-free pain management, we should be able to increase revenues in the U.S., international, active/retired military and consumer medical markets.”
About Endonovo Therapeutics, Inc.
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.
Safe Harbor Statement
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, trends, analysis, and other information contained in this press release including words such as "anticipate", "believe", "plan", "estimate", "expect", "intend" and other similar expressions of opinion, constitute forward-looking statements. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.
Investor Relations Contact:
Endonovo Therapeutics, Inc.
Steve Barnes
(800) 701-1223 Ext. 108
sbarnes@endonovo.com
www.endonovo.com
Media Contact:
Gregory A. McAndrews
Greg McAndrews & Associates
(310) 804-7037
greg@gregmcandrews.com
