Stimwave Technologies Incorporated (Stimwave) recently announced that it has reached an agreement to sell substantially all of its assets to Kennedy Lewis Management LP (Kennedy Lewis).
Since 2020, the company has successfully re-structured its entire team and business operations—according to a press release—and is now ready for the next chapter in its continued growth. Stimwave is also looking to establish a new standard of care in the field of peripheral nerve stimulation (PNS) for chronic pain patients.
In addition, Stimwave announced that it has received a commitment from Kennedy Lewis for up to US$40 million in debtor-in-possession financing. These new funds will enable the company to operate its business uninterrupted, and to continue to grow while providing the highest level of service to physicians and the patients they serve, the release adds.
Aure Bruneau, CEO of Stimwave, commented: “We are excited about the continued growth we have experienced over the last two years, during a challenging time. We are grateful for our customers’ partnership and the positive impact our therapy provides for their patients. The sale process we are undertaking will have an efficient and prompt exit, while we maintain our day-to-day commitment to meet our customers’ and patients’ support needs with the high standards of quality they expect from us.”
To facilitate the sale of assets and the financing described above, Stimwave has filed for voluntary Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware. The proposed sale will be conducted through a court-supervised process and subject to potential receipt of higher or better offers to purchase the company. Stimwave expects that the sale will close within the next 90–120 days.
Under Section 363 of the US Bankruptcy Code, Kennedy Lewis would serve as the ‘stalking horse’ bidder in the proposed auction, establishing a minimum value of the company’s assets, the release details. In order to maximise the asset price, the court-approved bidding procedures would allow for additional qualified prospective bidders to participate in an auction process.