ReWalk Robotics, Ltd. announced today that the company has entered into a strategic investment agreement with Timwell Corporation Limited, a Hong Kong corporation. ReWalk will receive $20 million in exchange for an aggregate of 16,000,000 of ReWalk ordinary shares, at a price per share of $1.25m as part of a broad strategic agreement to fund ReWalk’s overall development worldwide and to establish ReWalk’s presence in the Chinese market.
Under terms of the agreement, ReWalk and Timwell, through its affiliates and RealCan Ambrum Healthcare Industry Investment (Shenzhen) Partnership Enterprise (Limited Partnership) (“RealCan Ambrum”), plan to form a joint venture in China to develop, manufacture and market ReWalk’s products in China, including Hong Kong and Macau. The joint venture will initially focus on development, production and marketing of ReWalk’s Restore soft-suit exoskeleton for stroke patients in a rehabilitation setting, followed by commercialization of ReWalk’s spinal cord injury products for community and rehabilitation use. All capital funding for the joint venture will be provided by RealCan Ambrum with ReWalk contributing the technology.
“This investment from Timwell, a well-capitalized partner with deep local knowledge, enables us to expand the planned launch of the Restore soft suit exoskeleton in the United States and Europe to China. The expansion to China adds access to a market where there are more than 11 million stroke survivors, and 2.4 million people suffer stroke each year. To serve that population, the number of stroke rehabilitation centers in China is expected to exceed those in the US and EU combined by 2021,” said ReWalk CEO Larry Jasinski.
“This agreement also underscores Timwell’s belief in the strength of our Restore technology to address the mobility and rehabilitation needs of the stroke community. We believe the unique Restore technology has the potential to revolutionize the use of and cost structure for exoskeletons worldwide,” added Jasinski.
Under the terms of the agreement, Timwell will make the $20 million investment in three tranches. The first tranche of $5 million placed in escrow will be released upon shareholder approval of the transaction. A second tranche of $10 million will be provided upon formation of the joint venture in China. The third tranche of $5 million is expected to be provided by December 31, 2018 and no later than April 1, 2019. The investment agreement also contains certain other conditions precedent, which must be satisfied at each tranche. Timwell will add one member to ReWalk’s board of directors upon closing of the first tranche, and may be able to designate more under the agreement.
The broader strategic investment agreement includes a joint venture agreement, license agreement and supply agreement which are expected to be executed no later than July 1, 2018. Additional information regarding the investment is included in ReWalk’s Form 8-K to be filed with the Securities and Exchange Commission on March 8, 2018.