Motus GI Amends Royalty Agreement
– Amended agreement eliminates approximately $1.0M in contingent royalty obligations from balance sheet –
– Canceled royalty rights in exchange for common stock expected to improve Company’s stockholder equity, and simplify ongoing exploration of strategic and financing alternatives to maximize stockholder value –
FORT LAUDERDALE, Fla., Sept. 14, 2023 (GLOBE NEWSWIRE) -- Motus GI Holdings, Inc., (NASDAQ: MOTS) (“Motus GI” or the “Company”), a medical technology company focused on improving endoscopic outcomes and experiences, announced today it has reached an agreement to amend the royalty payment rights and, subsequently, cancelled the royalty rights in exchange for an aggregate of 1,455,641 shares of Motus common stock, effective as of September 12, 2023. This represents an approximate exchange ratio of 13,233.23 shares of common stock for each 1.0% of the aggregate royalty amount.
The cancellation of the royalty rights will result in an elimination of approximately $1.0 million in contingent royalty obligations from the Motus balance sheet, which is expected to help improve Motus’s stockholder equity.
“We appreciate the willingness of the requisite number of our royalty holders necessary to come to an agreement with the Company in order to amend their royalty rights and allow us to exchange shares of our common stock for the royalty rights. This amendment will strengthen our balance sheet and enhance our shareholder equity,” commented Mark Pomeranz, Chief Executive Officer. “We believe eliminating these royalty obligations simplifies our ongoing efforts in seeking strategic and financing alternatives aimed at accelerating commercialization of the Pure-Vu System and maximizing stockholder value. In addition, we are on track with the planned submission of a special 510(k) to the FDA by early Q4 2023 for the next generation of the Pure Vu EVS system. This regulatory submission will bring us one step closer to being able to commercially launch our next generation system in the market, expanding the Pure-Vu EVS platform’s capabilities into supporting upper GI procedures.”
About Motus GI
Motus GI Holdings, Inc. is a medical technology company, with subsidiaries in the U.S. and Israel, providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions.
For more information, visit www.motusgi.com and connect with the Company on Twitter, LinkedIn and Facebook.
This press release contains certain forward-looking statements. Forward-looking statements are based on the Company’s current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “predict,” “project,” “should,” “would” and similar expressions and the negatives of those terms, including without limitation, statements relating to risks related to market and other conditions, risks inherent in the development and commercialization of potential products, possible or assumed future results of operations, business strategies, potential grow opportunities, uncertainty in the timing and results of clinical trials or regulatory approvals, maintenance of intellectual property rights or other risks discussed in the Company’s quarterly and annual reports filed with the Securities and Exchange Commission, and its other filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Released September 14, 2023