Secures $40 Million in Financing to Support Continued Operations and Fund Growth
POMPANO BEACH, Fla., June 15, 2022--(BUSINESS WIRE)--Stimwave Technologies Incorporated and its subsidiary, Stimwave LLC (collectively, "Stimwave" or the "Company"), a leading provider of neurostimulation devices offering chronic pain relief, announced today that it has reached an agreement to sell substantially all of its assets to Kennedy Lewis Management LP or its affiliate ("Kennedy Lewis").
Since 2020, the Company has successfully re-structured its entire team and business operations. The new Stimwave team has worked closely with physicians, customers, professional societies, multiple governing agencies, and others to build a robust, trusted foundation. During this time, the Company’s unique neuromodulation therapies and services have helped more physicians treat patients who historically had limited, if any, alternative options to opioids. The Company is now ready for its next chapter of continued growth, while establishing a new standard of care in the field of peripheral nerve stimulation (PNS) for many more patients in the future.
The Company also announced that it has received a commitment from Kennedy Lewis for up to $40 million in debtor-in-possession financing. These new funds will enable the Company to operate its business uninterrupted and to continue to grow while providing the highest level of service to physicians and the patients they serve.
Aure Bruneau, CEO of Stimwave commented: "We are excited about the continued growth we have experienced over the last two years, during a challenging time. We are grateful for our customers’ partnership and the positive impact our therapy provides for their patients. The sale process we are undertaking will have an efficient and prompt exit, while we maintain our day-to-day commitment to meet our customers’ and patients’ support needs with the high standards of quality they expect from us."
To facilitate the sale of assets and the financing described above, Stimwave has filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The proposed sale will be conducted through a court-supervised process and subject to potential receipt of higher or better offers to purchase the Company. The Company expects that the sale will close within the next 90-120 days.
Under Section 363 of the U.S. Bankruptcy Code, Kennedy Lewis would serve as the "stalking horse" bidder in the proposed auction, establishing a minimum value of the Company’s assets. In order to maximize the asset price, the Court approved bidding procedures would allow for additional qualified prospective bidders to participate in an auction process.
Gibson, Dunn & Crutcher LLP is serving as Stimwave’s legal counsel. GLC Advisors & Co., LLC is providing investment banking services and Riveron RTS, LLC is serving as financial advisor.
Stimwave is a medical device company that develops, manufactures, and markets neuromodulation products. Its Peripheral Nerve Stimulation (PNS) and Spinal Cord Stimulation (SCS) products are implanted technology that block pain signals to the brain and provide a drug-free alternative for treating patients suffering from chronic pain. Stimwave’s Freedom Systems, the SCS and PNS products, provide a unique and innovative technology with an HF-EMC wireless energy transfer from an external transmitter and antenna to the implanted electrode array and separate receiver. Stimwave’s FDA-cleared product portfolio can treat nerves from the neck down that are causing pain. Stimwave’s principal place of business is in Pompano Beach, Florida and it operates worldwide through its operating subsidiaries. For more information, please visit https://stimwavefreedom.com/.
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Mike Vallie, ICR Westwicke