LOS ANGELES, CA--(Marketwired - Feb 10, 2014) - Endonovo Therapeutics, Inc. (OTCQB: HVPA) ("Endonovo" or the "Company") announced that it has signed a best efforts funding agreement with an institutional investor (the "Investor") for $10 million in the form of an unsecured promissory note due 2019 (the "Promissory Note"). The Promissory Note is to pay interest quarterly in the amount of seven (7) percent per annum.
As part of the funding agreement, the Investor shall receive twenty (20) percent of the common stock of the Company and shall have the right to elect one (1) Director to the Company's Board of Directors.
Additionally, the Company is entitled to the unconditional and irrevocable option to repurchase the common stock interest of the Investor for a fixed sum of $40 million payable in a combination of cash, and/or notes and/or common stock for a term of five (5) years from the date of closing.
The funding under the agreement with the Investor is subject, among other things, to the Investor's completion of its due diligence on the Company and the entry by the Company and Investor into definitive agreements, which have not been completed.
The Company expects the allocation of the net proceeds to include working capital, research and development, clinical trials, FDA approval and the commercialization of TVEMF technologies.
"We look forward to completing this round of financing in the next several weeks and bringing to market a compelling pipeline of TVEMF based therapies," said Alan Collier, CEO.
About Endonovo Therapeutics
Endonovo Therapeutics, Inc. is a publicly traded biotechnology company developing non-invasive, electromagnetic therapies designed to extend and enhance the human life by regenerating tissues and organs that have become injured or damaged due to disease and age. The Company is developing therapies for various inflammatory, autoimmune and degenerative diseases using Time-Varying Electromagnetic Fields (TVEMF).
Safe Harbor Statement
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, trends, analysis, and other information contained in this press release including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," and other similar expressions of opinion, constitute forward-looking statements. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.