The aggregate purchase price is about $21.5m. RGN is a clinical stage developer of non-invasive electroceuticals to treat neuro-inflammation and central nervous system diseases and disorders.
The deal includes the payment of $1.5m in cash, as well as issuing of $15m Endonovo common stock and $5m common stock warrants.
In addition, Endonovo will pay a 10% royalty on the sale of RGN commercialized products.
As part of the deal, Endonovo will acquire RGN assets, including an FDA-cleared device to treat pain and edema and multiple therapeutic clinical studies in neurological diseases and disorders.
RGN produces brain stimulation technologies, comprising of FDA-cleared devices for the treatment of post operative pain and edema.
The devices are currently being adapted to treat neuro-inflammatory conditions, including traumatic brain injury, acute concussion, post concussion syndrome and multiple sclerosis.
The portfolio also includes multi-coil transcranial magnetic stimulation (rTMS) technology to treat resistant major depressive disorder (MDD).
In March, RGN filed an FDA 510(k) pre-market notification for rTMS technology to treat MDD.
Endonovo chairman and CEO Alan Collier said: "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.
"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.”
RGN chairman and CEO Steven Gluckstern said: "We are very excited how the combined entities will lead the way for the development and adoption of this new class of therapies."
Image: Endonovo to acquire Rio Grande Neurosciences. Photo: courtesy of adamr / FreeDigitalPhotos.net.
