Company Intends to Dramatically Expand
Product Offerings into Bioelectronic Treatment of Nausea
CEO to Host Investor Call/Webcast on
Wednesday, October 19th at 1:30 PM PT / 4:30 PM ET
Tivic Health® Systems, Inc. (Nasdaq: TIVC) (“Tivic Health”), a
commercial-phase health technology company focused on bioelectronic
medicine, today announced it has entered into a definitive
agreement to acquire the Reliefband product line for nausea
treatment and all related assets from Reliefband Technologies,
LLC.
Reliefband has been an innovator in wearable, FDA-cleared
electronic therapeutics for treatment of nausea and vomiting.
Reliefband has multiple products available both over-the-counter
and by prescription.
“We are incredibly excited to add the full suite of Reliefband
products to our commercial portfolio,” said Jennifer Ernst, CEO of
Tivic Health. “The Reliefband team successfully pioneered a
direct-to-consumer business model for medical products. This
acquisition, when combined with our growing direct-to-consumer
sales of ClearUP, will significantly accelerate Tivic’s revenue
opportunities.”
Recurring nausea impacts approximately 1 in 6 US adults.
According to QY Research, nausea treatment is a $2.4B market in the
US and $5.5B globally, growing at 6.5% CAGR.
Reliefband’s wrist-worn electronic nerve stimulators have been
FDA-cleared for treatment of nausea associated with seven
independent clinical indications, including nausea from motion
sickness, pregnancy, migraines, anxiety, chemotherapy, various
medications and hangovers.
The patented products are backed by 40 peer-reviewed clinical
studies and have generated over 3500 Amazon reviews averaging 4+
stars.
Both Reliefband and ClearUP products offer consumers ways to
manage health-related conditions without the issues and side
effects often associated with medication use. Both are FDA-cleared,
highly effective, fast-acting, convenient, and drug-free. Both
currently are sold primarily online, and both have received CE
Marks allowing international expansion.
In addition to the Reliefband direct-to-consumer branded
products, Tivic will also acquire Reliefband’s Reletex-branded
prescription nausea treatments. Reletex products are currently
distributed by hospitals and medical professionals and are
reimbursed under HCPCS code E0765 for certain conditions.
“We look forward to growing Tivic with the addition of
clinically proven, revenue-producing bioelectronic products that
have seen strong customer adoption and growth,” continued
Ernst.
Consideration to be provided by Tivic consists of up to $33.5
million, of which up to $1.5 million can be paid, at the election
of Tivic, in restricted common stock of Tivic. Consideration is
subject to working capital adjustments, less Reliefband transaction
expenses and any indebtedness of Reliefband at closing.
The transaction is expected to be consummated in the fourth
quarter of 2022 or first quarter of 2023 after the satisfaction of
certain customary closing conditions, including but not limited to
securing the financing necessary to pay the purchase price.
Additional information on the transaction can be found in a Current
Report on Form 8-K filed by Tivic with the Securities and Exchange
Commission (SEC).
Jennifer Ernst, CEO of Tivic Health,
will host an investor conference call/webcast on Wednesday, October
19, 2022, at 1:30 PM PT / 4:30 PM ET.
Teleconference Details: Toll-Free: 888-506-0062
International: 973-528-0011 Participant Access Code: 533904
Webcast Link:
https://www.webcaster4.com/Webcast/Page/2865/46849
About Tivic
Tivic Health Systems, Inc. is a commercial-phase health
technology company delivering non-invasive bioelectronic treatments
that provide consumers with a choice in the treatment of
inflammation and immune-related conditions. For more information
visit https://tivichealth.com @TivicHealth.
Forward-Looking Statements
This press release may contain “forward-looking statements” that
are subject to substantial risks and uncertainties. All statements,
other than statements of historical fact, contained in this press
release are forward-looking statements. Forward-looking statements
contained in this press release may be identified by the use of
words such as “anticipate,” “believe,” “contemplate,” “could,”
“estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,”
“potential,” “predict,” “project,” “target,” “aim,” “should,”
“will” “would,” or the negative of these words or other similar
expressions, although not all forward-looking statements contain
these words. Forward-looking statements are based on Tivic Health
Systems, Inc.’s current expectations and are subject to inherent
uncertainties, risks, and assumptions that are difficult to
predict. Further, certain forward-looking statements are based on
assumptions as to future events that may not prove to be accurate.
Actual results could differ materially from those contained in any
forward-looking statement as a result of various factors,
including, without limitation: risks and uncertainties regarding
the potential that Tivic and Reliefband are not able to complete
the contemplated transaction, and even if they do complete it, that
the expected benefits of the transaction are not achieved; market
and other conditions; the risks that the ongoing COVID-19 pandemic
may disrupt Tivic or Reliefband’s business more severely than it
has to date or more severely than anticipated; unexpected costs,
charges or expenses that reduce Tivic’s capital resources; Tivic’s
inability to raise adequate capital to fund the purchase price as
well as its existing business; Tivic’s inability to innovate and
attract users for Reliefband’s products. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
such forward-looking statements. For a discussion of other risks
and uncertainties, and other important factors, any of which could
cause Tivic’s actual results to differ from those contained in the
forward-looking statements, see Tivic’s filings with the SEC,
including, its Annual Report on Form 10-K for the year ended
December 31, 2021, filed with the SEC on March 31, 2022, under the
heading “Risk Factors,” as well as the company’s subsequent filings
with the SEC. Forward-looking statements contained in this press
release are made as of this date, and Tivic Health Systems, Inc.
undertakes no duty to update such information except as required by
applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221017005377/en/
Investor Contact: Hanover International, Inc.
ir@tivichealth.com
Media Contact: Cheryl Delgreco
Cheryl.Delgreco@tivichealth.com 617-723-4004
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