Rio Grande Neurosciences backs out of $22m Endonovo deal

Rio Grande Neurosciences last week backed out of its pending acquisition by Endonovo Therapeutics (OTC:ENDV), after seeking to renegotiate the terms of the $22 million deal, Endonovo said.

Steven Gluckstern, chairman & CEO of Santa Fe-based Rio Grande, dissolved a binding letter of intent August 19 “following its request to renegotiate the terms of the binding LOI, including the aggregate purchase price and the removal of non-solicitation of the binding letter agreement,” Los Angeles-based Endonovo said.

“The company will not be proceeding with the acquisition,” Endonovo said. “Our board of directors has determined we are better served by this decision.”

The move means that Endonovo cancelled the $500,000 note issued toward the purchase price for Rio Grande. Endonovo, which raised $10 million to fund the $21.5 million buyout, was to have put up $1.5 million in cash, another $15 million in ENDV shares and $5 million worth of warrants for Rio Grande.

Santa Fe-based Rio Grande Neurosciences already has an FDA-cleared device for treating pain and edema, Endonovo said. RGN also has a multi-coil repetitive transcranial magnetic stimulation device with a pending 510(k) application.

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