Endonovo closes asset purchase agreement with SofPulse

Endonovo and its subsidiary, SofPulse, Inc. 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.
MB Bureau