UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 8-K
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date
of Report (Date of Earliest Event Reported): December 1, 2015
Ekso Bionics Holdings, Inc.
(Exact
Name of Registrant as specified in its charter)
Nevada |
333-181229 |
99-0367049 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer
Identification No.) |
1414 Harbour Way South, Suite 1201
Richmond, California 94804
(Address of principal executive offices,
including zip code)
(203) 723-3576
(Registrant’s telephone number, including
area code)
Not Applicable
(Registrant’s former name or former
address, if changed since last report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 3.02 | Unregistered Sales of Equity Securities |
On December 1, 2015, Ekso Bionics Holdings Inc. (the “Company”)
through its wholly owned subsidiary, Ekso Bionics, Inc. (“Ekso Bionics”), acquired the mechanical balance and support
arms technologies of Equipois, LLC, a New Hampshire limited liability company (“Equipois”), including the rights to
the zeroG® and X-Ar® products (the “Products”).
Pursuant to the terms of the asset purchase agreement among
the Company, Ekso Bionics, Equipois and Allard Nazarian Group, Inc., Equipois’ parent company (the “Asset Purchase
Agreement”), Ekso Bionics acquired assets (the “Acquired Assets”) integral to the Equipois business, including
but not limited to patents, trademarks and other intellectual property rights as well as certain tools and product designs and
specifications. Ekso Bionics also assumed the rights and obligations of Equipois under certain intellectual property license
agreements. Neither the Company nor Ekso Bionics assumed any other obligations of Equipois.
In connection with the Asset Purchase Agreement, the parties
entered into a supply agreement (the “Supply Agreement”) pursuant to which Equipois will supply the Products to
Ekso Bionics during a post closing transition period and a reseller agreement (the “Reseller Agreement”) pursuant to
which Equipois may purchase and resell the Products to certain current Equipois customers for a three-year term.
The initial purchase price for the Acquired Assets is 781,250
shares of common stock, par value $0.001 per share, of the Company (the “Common Stock”) that were issued at the closing
(the “Closing Shares”). The Company also agreed to issue additional shares of Common Stock based upon the
achievement of certain post closing performance criteria. The additional share issuances will be calculated as follows:
The Company will issue to Equipois $500,000 in
additional shares of Common Stock on December 31, 2016 or earlier in the event that Ekso Bionics terminates the Supply Agreement
without cause or Equipois terminates it for cause (the “Supply Earn-Out Payment”). If Ekso Bionics terminates the Supply
Agreement for cause or Equipois terminates it without cause, then Ekso Bionics will not make any Supply Earn-Out Payment;
The Company will issue to Equipois for each of the
calendar years 2016, 2017 and 2018 between $125,000 and $375,000 worth of additional Common Stock based upon the Product sales
by Equipois and Ekso Bionics during those periods (each an “Annual Earn-Out Payment”); and
Upon Ekso Bionics’ termination of the Reseller
Agreement without cause, the Company will pay to Equipois a final amount, payable in shares of Common Stock, such that the total
consideration received by Equipois, including the Closing Shares, the Supply Earn-Out Payment and the Annual Earn-Out Payments,
is not less than the sum of (a) 7.5 multiplied by an amount equal to 10% of specified revenue of Equipois related to sales of the
Products during the four complete quarters preceding the date of termination of the Reseller Agreement plus (b) 7.5 multiplied
by an amount equal to 5% of specified revenue of Ekso Bionics related to sales of the Products during the four complete quarters
preceding the date of termination of the Reseller Agreement (the “Final Earn-Out Payment” and together with the Annual
Earn-Out Payments, the “Sales Earn-Out Payments”).
The number of shares of Common Stock issuable by the Company
to satisfy the Supply Earn-Out Payment will be determined by dividing the payment amount by the lesser of (a) $1.28 or (b) the
greater of (i) $1.00 or (ii) the volume-weighted average price of the common stock for the 20 trading days preceding the date triggering
payment of the Supply Earn-Out (the “Minimum Price”). The number of shares of Common Stock issuable by the Company
to satisfy the Sales Earn-Out Payments (or any Buyout Payment described below) will be determined by dividing the payment amount
by the greater of (a) the volume-weighted average price of the Common Stock for the 60 trading days ending on the date immediately
prior to the termination of the applicable period or (b) the Minimum Price.
The Company is not obligated to pay a Sales Earn-Out Payment
if, prior to the time such Sales Earn-Out Payment otherwise becomes due and payable, (a) Ekso Bionics terminates either of the
Supply Agreement or the Reseller Agreement for cause prior to the end of its stated term, or (b) Equipois terminates either the
Supply Agreement or the Reseller Agreement other than for cause prior to the end of its stated term.
Each of the Company and Equipois may elect, upon 90 days notice
given prior to December 1, 2016, to terminate the Reseller Agreement and, in lieu of any further Sales Earn-Out Payments, to have
the Company make to Equipois a final payment, payable in shares of Common Stock (the “Buyout Payment”). If the
Company elects to make the Buyout Payment, the Buyout Payment will be in an amount such that the total consideration Equipois receives,
including all other payments, is not less than $2,500,000, in the case of the Company’s election prior to December 1, 2016,
or $3,000,000, in the case of its election between December 1, 2016 and November 30, 2017. If Equipois elects to receive
the Buyout Payment, the Buyout Payment will be in an amount such that the total consideration Equipois receives, including all
other payments, is not less than $1,750,000, in the case of Equipois’ election prior to December 1, 2016, or $1,875,000,
in the case of its election between December 1, 2016 and November 30, 2017.
The resale of shares of Common Stock issued to Equipois are
subject to volume limitations pursuant to which the number of shares of Common Stock that Equipois may sell or otherwise transfer
on any one day will not exceed 5% of the average daily trading volume of the Company’s Common Stock for the immediately preceding
20 trading days. In addition, Equipois may not sell or otherwise transfer any Closing Shares until June 1, 2016, at which point
Equipois may sell up to 50% of the Closing Shares. From June 2, 2016 to September 1, 2016, Equipois may sell up to 75% of the Closing
Shares, and following December 1, 2016, all of the Closing Shares may be sold. In addition, shares of Common Stock issued in connection
with the Buyout Payment or Final Sales Earn-Out Payment will be subject to a similar phased one-year lock-up. In all cases, resales
of the shares of Common Stock issued to Equipois will be subject to compliance with the requirements of securities law.
The Company issued the Closing Shares and will issue the shares
of Common Stock issuable in satisfaction of the Supply Earn-Out Payment, the Sales Earn-Out Payments or the Buyout Payment, as
the case may be, in reliance upon the exemption from registration under Section 4(a)(2) of the Securities Act or Rule 506 of Regulation
D.
| Item 7.01 | Regulation FD Disclosure |
On December 4, 2015, the Company issued a press release announcing
the acquisition of the Acquired Assets from Equipois pursuant to the Asset Purchase Agreement. A copy of the Company’s press
release is attached hereto as Exhibit 99.1.
The information contained in this Item 7.01, including the information
contained in Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the
Securities and Exchange Act of 1934, as amended, or incorporated by reference into any filing of the Company, whether made before
or after the date hereof, regardless of any general incorporation language in such filing.
Forward-Looking Statements
This Current Report on Form 8-K, including Exhibit 99.1 furnished
herewith, contains “forward-looking statements.” Any statements contained in this press release that do not describe
historical facts may constitute forward-looking statements. Forward-looking statements may include,
without limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives
relating to the design, development and commercialization of human exoskeletons, (ii) a projection of financial results, financial
condition, capital expenditures, capital structure or other financial items, (iii) the Company's future financial performance and
(iv) the assumptions underlying or relating to any statement described in points (i), (ii) or (iii) above. Such forward-looking
statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because
they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and
are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual
results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements
as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of the forward-looking
statements or cause actual results to differ materially from expected or desired results may include, without limitation, the Company's
inability to obtain adequate financing to fund the Company's operations and necessary to develop or enhance our technology, the
significant length of time and resources associated with the development of the Company's products, the Company's failure to achieve
broad market acceptance of the Company's products, the failure of our sales and marketing organization or partners to market our
products effectively, adverse results in future clinical studies of the Company's medical device products, the failure to obtain
or maintain patent protection for the Company's technology, failure to obtain or maintain regulatory approval to market the Company's
medical devices, lack of product diversification, existing or increased competition, and the Company's failure to implement the
Company's business plans or strategies. These and other factors are identified and described in more detail in the Company's filings
with the SEC. These forward-looking statements are made as of the date of this Current Report, and the Company does
not undertake an obligation to update these forward-looking statements after such date.
| Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits.
Exhibit |
Description |
|
|
99.1 |
Press release dated December 4, 2015 |
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
|
EKSO BIONICS HOLDINGS, INC. |
|
|
|
|
By: |
/s/ Max Scheder-Bieschin |
|
Name: |
Max Scheder-Bieschin |
|
Title: |
Chief Financial Officer |
Dated: December 4, 2015
Exhibit 99.1
ekso
bionics® Acquires gravity balancing arm technology FROM Equipois, LLC
Strategic investment adds key
sales channels for Ekso Bionics’ industrial systems
RICHMOND, Calif., December 4, 2015
– Ekso Bionics Holdings, Inc. (OTCQB: EKSO), a leading global robotic exoskeleton company, announced today it acquired the
gravity balancing arm technologies of Equipois, LLC, including the zeroG™ and X-Ar™ products. The all-stock transaction
is a strategic acquisition for Ekso Bionics that is intended to expand the company’s exoskeleton capabilities in the industrial
market.
The patented technology behind the
Equipois products enables workers to maneuver tools and other objects as if weightless. Some of the world’s largest companies
in aerospace, defense, automotive, heavy machinery, and other manufacturing industries are using this technology to enhance human
performance and safety.
“Our ongoing field trials
throughout this past year have clearly shown that now is the time to bring our exoskeleton technology to the industrial construction
market. Companies are ready for exoskeletons, and their workers are eager to use them,” said Russ Angold, president of Ekso
Labs and co-founder of Ekso Bionics. “Adding the Equipois product portfolio provides us with core technology to meet customer
demand and immediately expands our customer reach from construction to industrial and manufacturing end-users as well.”
“It‘s exciting to see
our technology go from helping people shoot movies to making peoples’ lives better on the job site by helping to reduce
fatigue, protect from injuries and increase productivity”, said Garrett Brown, inventor of the Steadicam® camera stabilizer
as well as the technology incorporated into the Equipois arms. “It’s wonderful to see Ekso Bionics bringing their
exoskeleton technology into the industrial construction market for able-bodied workers, much as they’ve already done for
patients in medical rehabilitation. I‘m excited to be a part of this new success.”
Building on their installed base
of over 600 units, Equipois has entered into supply and reseller arrangements with Ekso Bionics under which it will continue to
sell the zero G™ and X-Ar™ products to their current manufacturing customers while Ekso Bionics will expand gravity
balancing arm technology into industrial construction programs for human augmentation solutions.
“We
definitely see this as the whole being greater than the sum of the parts,” said John Allard, chief executive officer of
the Allard Nazarian Group, the parent corporation of Equipois.
“We are excited to be shareholders in such an innovative company that is taking human augmentation technology to the next
level and into a market with such promising opportunity.”
About Ekso Bionics
Since 2005, Ekso Bionics has been
pioneering the field of robotic exoskeletons, or wearable robots, to augment human strength, endurance and mobility. The company's
first commercially available product called Ekso has helped thousands of people living with paralysis take millions of steps not
otherwise possible. By designing and creating some of the most forward-thinking and innovative solutions for people looking to
augment human capabilities, Ekso Bionics is helping people rethink current physical limitations and achieve the remarkable. Ekso
Bionics is headquartered in Richmond, CA and is listed on the OTC QB under the symbol EKSO. www.eksobionics.com
Forward-Looking
Statements
Any statements contained in this
press release that do not describe historical facts may constitute forward-looking statements. Forward-looking statements may
include, without limitation, statements regarding (i) the plans and objectives of management for future operations, including
plans or objectives relating to the design, development and commercialization of human exoskeletons, (ii) a projection of financial
results, financial condition, capital expenditures, capital structure or other financial items, (iii) the Company's future financial
performance and (iv) the assumptions underlying or relating to any statement described in points (i), (ii) or (iii) above. Such
forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may
not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates
and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no
control over. Actual results and the timing of certain events and circumstances may differ materially from those described by
the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy
of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without
limitation, the Company's inability to obtain adequate financing to fund the Company's operations and necessary to develop or
enhance our technology, the significant length of time and resources associated with the development of the Company's products,
the Company's failure to achieve broad market acceptance of the Company's products, the failure of our sales and marketing organization
or partners to market our products effectively, adverse results in future clinical studies of the Company's medical device products,
the failure to obtain or maintain patent protection for the Company's technology, failure to obtain or maintain regulatory approval
to market the Company's medical devices, lack of product diversification, existing or increased competition, and the Company's
failure to implement the Company's business plans or strategies. These and other factors are identified and described in more
detail in the Company's filings with the SEC. To learn more about Ekso Bionics please visit us at www.eksobionics.com.
The Company does not undertake to update these forward-looking statements.
# # #
CONTACT:
Media Contact:
Heidi Darling,
Director of Marketing Communications
Phone: 510-984-1761
x317
E-mail: hdarling@eksobionics.com
Investor Contact:
Chad Rubin,
Senior Vice President
Phone: 646-378-2947
E-mail: crubin@troutgroup.com
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