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ELMSFORD, N.Y. - NanoVibronix , Inc. (NASDAQ:NAOV), a medical device company with a current market capitalization of $2.25 million, has announced the acquisition of ENvue Medical (TASE:PMCN) Holdings Corp., a provider of enteral feeding solutions. The deal, completed on Thursday, is expected to enhance NanoVibronix's market position in enteral feeding technology and expand its reach in the medical device sector. The company has shown impressive revenue growth of 228% in the last twelve months, according to InvestingPro data.
The acquisition was structured as a stock-for-stock transaction, with ENvue's equity exchanged for both common and Series X Non-Voting Convertible Preferred Stock of NanoVibronix. Subject to stockholder approval, the Series X Preferred Stock will convert into common stock, potentially resulting in ENvue's holders owning 85% of NanoVibronix's common stock. Currently trading at $0.59 per share, InvestingPro analysis suggests the stock is undervalued, with the company maintaining a healthy balance sheet showing more cash than debt.
Concurrent with the acquisition, NanoVibronix completed a private placement investment, issuing a senior convertible debenture with a principal amount of $500,000 to an institutional investor. This debenture, pending stockholder approval, will be convertible into shares of NanoVibronix's common stock at an initial conversion price subject to anti-dilution adjustments. The company maintains a solid gross profit margin of 60%, though InvestingPro data indicates rapid cash consumption - subscribers can access 6 additional ProTips and comprehensive financial metrics to better evaluate this investment opportunity.
Brian Murphy, CEO of NanoVibronix, emphasized the transformative potential of the acquisition, citing ENvue Medical's innovative solutions for patient safety in enteral feeding. Dr. Doron Besser, CEO of ENvue Medical, echoed these sentiments, anticipating the opportunity to extend their reach and impact on patient care through the merger.
Following the acquisition, ENvue will operate as a wholly-owned subsidiary of NanoVibronix, with changes in the board of directors to include leaders from both companies. The transaction received approval from the boards and stockholders of both companies.
NanoVibronix specializes in non-invasive therapeutic devices using surface acoustic wave technology, while ENvue Medical is known for its electromagnetic navigation technology for enteral feeding tube placement. The combination of these two entities is poised to create a more robust platform for medical device innovation and patient care.
The securities sold in the private placement have not been registered under the Securities Act of 1933 and are subject to registration or exemption requirements. NanoVibronix has agreed to file a registration statement for the resale of the involved securities with the SEC.
This strategic move by NanoVibronix aims to leverage ENvue's proprietary technology and market presence to bolster its growth and provide enhanced medical solutions to healthcare providers and patients. This article is based on a press release statement from NanoVibronix, Inc.
In other recent news, NanoVibronix, Inc., a medical device company, has made significant strides in the development of its therapeutic ultrasound products. The company recently completed the design phase of its next-generation PainShield® and UroShield® devices. The updated design aims to reduce assembly costs and user burden, with the goal of broader adoption in the healthcare community.
In a separate development, NanoVibronix entered into a securities exchange agreement with an institutional investor, issuing new shares and warrants in exchange for an outstanding warrant held by the investor. This transaction is seen as a restructuring of the investor's interest in the company.
Additionally, NanoVibronix extended its exclusive distribution agreement with Ultra Pain Products, Inc. (UPPI) for the distribution of its PainShield device. The renewed contract guarantees a minimum purchase commitment of $12 million from UPPI.
However, NanoVibronix is currently facing potential delisting from The Nasdaq Capital Market due to non-compliance with two key listing requirements. The company is working on a plan to regain compliance and will present this at an upcoming hearing before the Nasdaq Hearings Panel. These are the latest developments in NanoVibronix's journey.
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