Wound care company Sanuwave Health announced that it entered into a business combination agreement with SEP Acquisition Corp.
The merger with SEP, a special purpose acquisition company (SPAC), aims to create a Nasdaq-listed company. Upon the transaction’s completion, the combined company expects to operate under the Sanuwave name and the “SNWV” ticker. The proposed transaction values Sanuwave at $127.5 million.
According to a news release, Sanuwave expects its investors to have an approximately 69.6% equity ownership. This assumes the combined company received approximately $13 million in gross proceeds at closing. It includes $12 million from non-redeeming holders of SEPA’s Class A common stock and other PIPE investors, plus $1 million from the SPAC sponsor.
Approximately $8.5 million in capital has already been committed, including $7 million in shares of SEPA’s Class A stock.
“SEPA is a strong, value-…