ReWalk Robotics Raises $20 Million for Expansion Into Chinese Market
The company plans to bring to China its wearable exoskeletons that help people walk again after injuries and strokes
ReWalk Robotics. Ltd., which develops wearable exoskeletons that help people walk again after injuries and strokes, plans to expand into the Chinese market with the help of a $20 million investment offered by Hong Kong-based Timwell Corporation Limited.
ReWalk has offices in the U.S., Israel and Germany.
ReWalk announced the planned investment Thursday in a filing with the U.S. Securities and Exchange Commission, saying that Timwell would receive a 35%-stake in the company.
|A ReWalk Robotics device. Photo: Reuters||צילום: רויטרס|
The deal still requires the approval of ReWalks shareholders. With their approval, Timwell will get a to appoint a director to ReWalk’s board.
Timwell has committed to purchasing 16 million newly issued shares from ReWalk at a per share price of $1.25. The investment will be made in three stages with Timwell providing $5 million after shareholder approval, then $10 million by the end of the year and the remaining $5 million by April 1 of 2019.
Founded in 2001, ReWalk has two product lines. The first, a rigid-frame exoskeleton for people who cannot walk on their own due to spinal cord injuries, has been on the market for years. The company’s new technology is a soft suit that aids stroke patients whose motor functions have been impaired.
The company expects to soon enter clinical trials in the U.S. for the new system, according to ReWalk chairman Jeff Dykan.
As part of the deal, ReWalk and a Timwell affiliate company will form a joint venture that will use the funding to develop a version of its soft suit for the Chinese market.
“Because the anatomy is different—not only height but also proportions—the system has to be adjusted for the population of China,” Mr. Dykan said in an interview.
The name of the Timwell affiliate is RealCan Ambrum Healthcare Industry Investment (Shenzhen) Partnership Enterprise (Limited Partnership), which is an affiliate of the China-based medtech and pharmaceutical company Realcan Pharmaceutical Co., Ltd.