Endonovo Therapeutics Details Plan to Spin Off Medical Device Division as a Listed Public Company
Los Angeles, CA, Jan. 09, 2023 (GLOBE NEWSWIRE) -- Endonovo Therapeutics Inc. (OTCQB: ENDV) today announced details for its plan to spin off its current medical device division, known as NewCo, as a separate publicly-traded company. Endonovo’s other current division focuses on mergers and acquisitions (M&A) in the specialty construction sector and will seek to be uplisted to a national exchange.
Spin-Off Produces Two Publicly-Traded Companies
NewCo (the medical device division) will be run by Ira Weisberg and will focus on advancement of medical device sales while preparing to spin off as a national exchange listed company.
Endonovo’s existing M&A division will be run by Alan Collier and will focus on M&A strategy of purchasing profitable companies in the specialty construction sector with a goal of uplisting in the future.
NewCo Moving Forward
Ira Weisberg, President and Chief Commercial Officer of Endonovo's current medical division, stated: “NewCo featuring SofPulse® is going to continue moving forward with programs to capitalize on our portfolio of commercial and clinical-stage wearable therapeutic devices and IP. We will continue to aggressively build contracts with the Department of Defense, the VA and other domestic and international surgical and pain management markets. As a newly formed public company, we will have a new board of directors, new sales and marketing teams and a determined focus to bring PEMF technology to the global pain management market.”
Endonovo’s Future
Endonovo's current mergers and acquisitions division, run by CEO Alan Collier and Head of Corporate Development Garry Michael Kann, will focus on acquiring specialty service providers in the construction industry. The division has more than 50 years of experience in acquiring and running such companies and aims to provide a steady stream of revenue through its "Build Up Strategy."
The division has recently entered into a letter of intent to purchase a highly profitable commercial construction company and is working to secure financing for additional acquisitions in the specialty construction sector.
Recent Development
The M&A division has entered into a new letter of intent to purchase an additional highly profitable construction company. The target company is a market-leading specialty trade construction firm with a history of strong revenue growth and is expected to bring in over $50 million in revenue for 2021 and have an EBITDA of $13.5 million. More recent financials will be reviewed during the due diligence period.
Acquisition of the specialty trade construction company, once completed, will establish Endonovo as a diversified holding company in the specialty trade construction industry with strong historical proven revenue and profitability moving forward. Endonovo expects the completion of the target acquisition will allow NewCo to finalize the proposed spin-off and establish a strong presence in the medical device industry.
Upon completion of the spin-off, it is believed that NewCo will have a pre-money valuation in excess of $50 million. As previously announced, it is expected 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.
Enhanced Shareholder Value
Endonovo CEO Alan Collier said: "We are excited to bring our two divisions, the medical device division (NewCo) and the specialty construction division to the public markets and provide our shareholders with the opportunity to capitalize and invest in two separate, viable companies. We believe this spin-off will create long-term value for our shareholders as both entities continue to grow and succeed separately from each other."
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.
