Israeli medical device company ReWalk Robotics Ltd.(Nasdaq:RWLK) has signed a strategic investment agreement with Hong Kong based Timwell Corporation Ltd. Timwell will invest $20 million in ReWalk, at $1.25 per share, a 13.6% premium on the market price. The strategic agreement is to fund ReWalk’s overall development worldwide and to establish ReWalk’s presence in the Chinese market.
ReWalk has developed a wearable robotic exoskeleton that provides powered hip and knee motion to enable individuals with spinal cord injury (SCI) to stand upright, walk, turn, and climb and descend stairs.
Under terms of the agreement, ReWalk and Timwell, through its affiliates and RealCan Ambrum Healthcare Industry Investment (Shenzhen) Partnership Enterprise (Limited Partnership), 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 rehabilitation, 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 US 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.
Published by Globes [online], Israel business news - www.globes-online.com - on March 8, 2018
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