Endonovo Therapeutics Inc. has arranged an equity purchase agreement with Cavalry Fund I, under which Endonovo will sell up to $10 million in shares during the next 24 months, the company announced Tuesday.
The Woodland Hills medical device maker will use the funds to increase inventory of its SofPulse electrical pulse device, advance sales and marketing efforts and pay down debt. The agreement stipulates that 50 percent of proceeds go to pay down existing convertible notes.
No price was set for the shares, as “Endonovo Therapeutics will control the timing and amount of any sales to Cavalry based on market price at the time of each sale,” the company said.
“We are excited to establish this relationship with Cavalry and the flexibility to potentially access capital on a cost-effective basis,” Chief Executive Alan Collier said in a statement. “We believe this agreement allows Endonovo to receive funding to meet our projected sales growth on favorable terms.”
Shares of Endonovo (ENDV) closed Tuesday at 13 cents on the over-the-counter market.