Endonovo Therapeutics (OTC:ENDV) said today that it agreed to pay $21.5 million to acquire Rio Grande Neurosciences and its non-invasive devices for treating brain disorders.
The cash-and-stock deal calls for Endonovo to put up $1.5 million in cash, another $15 million in ENDV shares and $5 million worth of warrants. The companies signed a binding letter of intent and expect to ink a deal during the 3rd quarter; Los Angeles-based Endonovo said it issued a $500,000 note toward the purchase price and agreed to a 10% sales royalty and to assume the acquisition’s senior secured debt.
Santa Fe-based Rio Grande Neurosciences already has an FDA-cleared device for treating pain and edema, Endonovo said. RGN also has a multi-coil repetitive transcranial magnetic stimulation device with a pending 510(k) application, according to a press release.
“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,” Endonovo chairman & CEO Alan Collier said in prepared remarks. “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.”
“We are very excited how the combined entities will lead the way for the development and adoption of this new class of therapies,” added RGN chairman & CEO Steven Gluckstern. “This is an incredible opportunity of our non-invasive electroceuticals technology. By combining our industry leading 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.”
ENDV shares closed up 9.2% at 14.2¢ per share July 8.
