Sales unlocks value for shareholders while advancing efforts to launch aVNS product
Majority of $3.66M in net proceeds to be used to pay near-term debt maturities
Company updates for 2019
Nexeon Medsystems, a medical device manufacturing company, has announced that it has closed on the sale of Medi-Line to a European private equity group. The Belgian-based manufacturing company experienced substantial revenue growth since its acquisition by Nexeon.
“The Medi-Line team has done an incredible job growing the business while maintain high-levels of quality, we are happy to have grown the business with them” said Nexeon Chairman Will Rosellini. “Since we were unable to close financing with our S-1 offering in 2018, we have looked to strategic alternatives to satisfy existing debt obligations. This sale will allow our focus to be on expediting our aVNS neurostimulation product launches.
Following the conclusion of the Company’s evaluation of strategic alternatives in 2019, Nexeon’s senior management, along with the Nexeon’s Board of Directors, committed to consider other options to unlock value for shareholders. Since then, the Company has entered a non-binding term sheet to license its implantable platform for use as a closed-loop neurostimulation system and completed the sale of Medi-Line. The implantable platform has previously been manufactured and utilized by Galvani Bioscience and collaborators via the NIH SPARC program.
The Company is currently working to get current with its financial reporting and completing a 15 patient study evaluating the utilization of transcutaneous auricular vagus nerve stimulation (aVNS) for the relief of paroxysmal atrial fibrillation. The Company has licensed a portfolio of patents from Ohio State to provide further protection on the product portfolio and was previously awarded a €3.4M research grant that will fund an additional 50 patients in 2020.
About Nexeon MedSystems Inc: Nexeon Medsystems, Inc. is a global medical device company focused on providing innovative neurostimulation products that improve the quality-of-life of patients suffering from debilitating neurological diseases. Nexeon has developed and commercialized a neurostimulation system that can be utilized to treat a variety of neurological diseases.