LOS ANGELES, CA--(Marketwired - May 15, 2014) -
Endonovo Therapeutics, Inc. (OTCQB: ENDV
) ("Endonovo" or the "Company"), formerly Hanover Portfolio Acquisitions, Inc. (OTCQB: HVPA
), a biotechnology company developing bioelectronic and cell based therapies, today announced that it has affected a 1-for-100 reverse stock split and disclosed a plan to recapitalize the Company's balance sheet in order to make the Company's common stock more attractive to a broader range of institutional investors and to begin meeting the minimum initial listing requirements of the NASDAQ Capital Market.
The Company affected the reverse split by filing an amendment to its certificate of incorporation with the Delaware Secretary of State, as had been previously authorized by a majority of the Company's shareholders. The Company expects the reverse split to be reflected in trading prices quoted on the OTCQB beginning May 15, 2014.
The Company's issued and outstanding shares of common stock will decrease to approximately 920 thousand post-split shares from approximately 92 million pre-split shares.
As a result of the reverse split, each 100 shares of common stock held by each shareholder will be converted automatically into one share of common stock. All fractional shares will be rounded up and the Company will issue an additional share to said shareholders.
The trading symbol for the common stock will remain unchanged, although a "D" will be placed at the end of the symbol (ENDV), for 20 business days to alert the public to the reverse split. In addition, the Company's common stock will trade under a new CUSIP number (29272H201).
It is not necessary for Company shareholders to exchange their existing stock certificates for new certificates as a result of the reverse split, although stockholders may do so if they wish. Globex Transfer, LLC, the transfer agent for the Company's common stock, upon request, will explain how to exchange their existing certificates.
Additionally, the Company announced that it expects to issue approximately 75 million additional post-split shares to various affiliates, professionals, vendors, note holders and others as part of a plan to recapitalize the Company's balance sheet.
As part of the recapitalization plan, the Company announced that it is offering certain note holders of the Company's current outstanding debt (the "Note Holders") the option to convert the principle amount of their notes and any accrued interest (the "Notes") into shares of the Company's common stock at a price of $0.50 per share (the "Conversion").
The Conversion will allow Endonovo to strengthen its balance sheet in order to attract additional capital to fund the Company's commercialization efforts, develop additional technologies in its portfolio of regenerative therapies and up-list the Company's common stock onto the NASDAQ Capital Market.
"We believe that Endonovo Therapeutics is significantly undervalued in the market based on our pipeline of bioelectronic and regenerative therapies," stated Alan Collier, Chairman and CEO of Endonovo Therapeutics. "This is the first step to meeting the initial listing requirements of the NASDAQ Capital Market, which may allow us to receive a higher valuation, better market support and facilitate the raising of additional capital to support the commercialization of our technologies."
About Endonovo Therapeutics
Endonovo Therapeutics, Inc. is a publicly traded biotechnology company developing novel cell-based therapies and non-invasive bioelectronic therapies designed to extend and enhance the human life by regenerating tissues and organs that have become injured or damaged due to disease and age. The Company is developing therapies for various inflammatory, autoimmune and degenerative diseases using cell therapies and Time-Varying Electromagnetic Fields (TVEMF).
Safe Harbor Statement
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, trends, analysis, and other information contained in this press release including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," and other similar expressions of opinion, constitute forward-looking statements. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.