- Nuwellis did not disclose the value of the deal that is aimed at expanding the company’s portfolio into real-time renal diagnostics.
- The company said that the transaction is expected to close upon the completion of customary closing conditions.
- The Minneapolis-based company also announced a $5 million private placement and warrant inducement transaction priced at-the-market.
Shares of Nuwellis Inc. (NUWE) slumped over 16% after-hours on Thursday after the company said that it has inked an agreement to acquire Israeli medical technology company Rendiatech.
Nuwellis did not disclose the value of the deal, which is aimed at expanding the company’s portfolio into real-time renal diagnostics beyond therapeutic fluid management. Rendiatech is focused on automated kidney function monitoring.
The company’s current portfolio includes commercially available and development-stage technologies addressing complex cardiorenal conditions.
Upsides Of The Transaction
The company said that the transaction is expected to close upon the completion of customary closing conditions.
Upon closing, Nuwellis will gain access to Rendiatech’s Clarity technology, allowing for expansion into advanced urine-based analytics and broader kidney function assessment, the company said, adding that the establishment of new sales channels is not expected to be needed to develop Rendiatech’s technology.
“By entering into this transaction, we are positioning the company to extend our capabilities beyond therapeutic fluid removal and into real-time renal monitoring, which we believe is a natural and complementary evolution of our portfolio,” CEO John Erb said.
Separately, the Minneapolis-based company also announced a $5 million private placement and warrant inducement transaction priced at-the-market. The transaction is expected to close on or about Jan. 30.
The company did not detail the purposes for which the proceeds will be used.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around NUWE stock stayed at ‘extremely bullish’ territory while message volume stayed at ‘extremely high’ levels.
A Stocktwits user said that they are bullish on the acquisition until proven otherwise.
NUWE stock has dropped over 90% over the past 12 months.
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