SEP Acquisition in an 8-K included an investor presentation promoting its proposed merger with SANUWAVE Health. Announced last month, the deal has an enterprise value of $127.5 million.
SANUWAVE develops next-generation FDA-approved wound care products.
If approved, upon closing SANUWAVE would list on the Nasdaq under the symbol SNWV.
SANUWAVE investors are anticipated to have an approximately 69.6% equity ownership in the new entity, assuming the combined company receives approximately $13 million at closing, including $12 million from non-redeeming holders of thre SPAC's stock and other PIPE investors, and $1 million from the SPAC sponsor converting a loan into equity on the same terms as the PIPE.
Approximately $8.5 million of capital has already been committed, including $7 of SEP shares held by investors affiliated with Sweat Equity Partners and Mercury life sciences who have agreed to enter into voting and non-redemption agreements.
SANUWAVE is a commercial stage medical device company in the $45 billion U.S. wound care space. It has two FDA-approved products and its lead product, UltraMIST, has nationwide schedule 1 reimbursement from CMS. Read more.