Endonovo Closes Asset Purchase Agreement for a Minimum of $50M With SofPulse, Inc

Los Angeles, CA, March 28, 2024 (GLOBE NEWSWIRE) -- Endonovo (OTC PINK: ENDV) and its subsidiary, SofPulse, Inc., today announced they have finalized and completed the Asset Purchase Agreement (APA), originally signed in December 2023, for the acquisition of Endonovo's assets and Intellectual Property (IP) for a minimum of $50 million.

With completion of the APA, both Endonovo and SofPulse, Inc. share a strategic vision and a commitment for long term growth.

Finalized Terms of SofPulse, Inc. Spin-off

The APA transaction for the purchase of Endonovo assets and IP by SofPulse, Inc. is now closed, pending the customary regulatory approvals.

Key points of the APA include:

  • Agreement to engage Adeptus, a qualified third party's asset valuation firm.
  • Acquisition of ENDV IP by SofPulse Inc., including FDA-clearance in the human medical markets, for $50 Million, with potential additional valuation determined by Adeptus (which management believes will be between $50 million to $100 million).
  • Agreement for SofPulse Inc. to issue $50 million in freely traded stock through an S-1 registration, priced at $5.00 per share to Endonovo.
  • Register and distribute SofPulse Inc. shares to ENDV's shareholders with its present intention is to distribute 80% of such shares to ENDV shareholders on a date to be determined.
  • Any additional valuation by Adeptus over $50 million will be paid in cash or in a secured promissory note which will be convertible into NASDAQ listed marketable securities at the sole discretion of the ENDV.
  • Filing of S-1 registration statement to register the assets being purchased and to fulfill the regulatory requirements for a NASDAQ listing following the sale's completion.

SofPulse, Inc. Capital Raise

SofPulse, Inc. has commenced its capital raise of up to $1,000,000 through a 506(c) -offering tailored for accredited investors. The present capital offering is valued at a pre-money valuation of approximately $25.2 million, with shares priced at $2.50 per share. The capital raise is anticipated to support further development and growth. Upon completion of the capital raise, SofPulse Inc. will look to further develop the assets and IP through additional capital funding rounds to fund its path toward its IPO and NASDAQ registration.

SofPulse Inc. Drives Revenue Growth with Expanded Distribution

SofPulse® Pulsed Electro Magnetic Field (PEMF) medical technology, utilizing its FDA-clearance for the reduction of pain and edema post-operatively, helps to position the Company as a leader in the development of innovative medical devices.

To drive revenue and future expansion, SofPulse, Inc. aims to build on current marketing distribution initiatives for long-term growth and stability in the following areas:

  • Development of Veterans Association (VA) and Department of Defense (DoD) post-operative pain management market for SofPulse®.
  • Expand distribution throughout Taiwan, building on Taiwan FDA clearance.
  • Increase expansion efforts into other Asian markets such as Singapore, South Korea, Thailand, and Hong Kong.
  • Grow International distribution of SofPulse® in Mexico, Central and South America.
  • Re-initiate efforts to penetrate European markets with SofPulse® devices.
  • Expand and develop SofPulse® devices and other new PEMF medical devices for commercialization to all US hospital, surgical and rehabilitation facilities.

Endonovo Market Outlook is Extremely Positive

The Endonovo management team is excited about the completion of the APA and looks forward to the continued growth and success of Endonovo Therapeutics, Inc. through the following areas of business:

  • Exclusive rights to develop non-medical human PEMF IP and wellness markets.
  • Development of new non-medical wellness products for the expanding U.S. PEMF therapy device wellness market.
  • Utilization of groundbreaking multi-coil IP technology for over-the-counter PEMF product development in wellness and human markets.
  • Maintenance of rights to develop comprehensive telehealth division and platform (SofPulse, Inc. has signed an exclusive agreement to be a customer with a five-year contract).
  • Continued focus on mergers and acquisitions division to enhance product offerings for new technology and IP.

Endonovo, as business continues to expand, offers additional value to shareholders with the development of the non-medical Wellness market and other opportunities planned by the Company to sustain its long-term growth.

SofPulse® PEMF Benefits and Technology Featured in The Press

SofPulse®'s effective non-pharmacological PEMF pain and inflammation management solutions were highlighted in a recent article by Wallstreetpr.com, titled "Beyond the Pill: Athletes Champion PEMF and Non-Opioid Solutions for Pain Management (ENDV)." The article can be found on MarketScreener, Barchart.com, abnewswire, Benzinga, Muck Rack, The Globe and Mail, and other news outlets.

Click to view article:

About Endonovo Therapeutics, Inc.

Endonovo Therapeutics is currently structured into three divisions- Legacy – a commercial stage developer primarily of medical and non-medical PEMF devices and products; and its Build Up Strategy – acquiring complementary new technology industries; and its Telehealth - focused on bringing Telehealth solutions to the commercial and medical markets. In 2023, Endonovo announced the sale of their medical division and related IP for $50 Million or higher, through an Asset Purchase Agreement (APA) to SofPulse, Inc.. SofPulse Inc., a current subsidiary of Endonovo and a proposed spin-off company through the APA, plans to coordinate the use of SofPulse® and continue to commercialize innovative medical devices globally.

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 after the date of this press release.

Investor Relations Contact:
Endonovo Therapeutics, Inc.
Steve Barnes