Completes business combination with
ProSomnus common stock will trade on Nasdaq Capital Market under ticker symbol “OSA”
A key reason for going public was to bring to fruition ProSomnus’ ambitious growth plans. ProSomnus will use the capital to scale up its business by expanding and investing in three key areas: technology, sales and manufacturing. ProSomnus is planning to open its new design and manufacturing facility next month, which will be optimized for mass-customized manufacturing, AI-driven design and 3D robotic milling This will enable the Company to increase manufacturing capacity four-fold for its Oral Appliance Therapy (“OAT”) devices to meet the rising demand of providers and patients. Additional capital also will allow the Company to grow its international presence as it continues to attract providers in the multi-billion dollar North American market, as well as globally, representing a
ProSomnus will continue to be led by
Effective today, ProSomnus will add to its Board of Directors including the appointment of the following individuals who bring a depth and breadth of talent to the team:
Heather Rider will serve as Compensation Committee Chair.Ms. Rider is currently on the Board of Directors of publicly traded companies including Inogen, Inc., an oxygen therapy technology manufacturer, and served on the Board of Directors ofIntricon Corporation , a micro-medical technology component manufacturer, until its sale earlier this year.Steve Pacelli will serve as Nominating and Governance Committee Chair.Mr. Pacelli is Executive Vice President and Managing Director ofDexcom Ventures , a leader in continuous glucose monitoring for people with diabetes.Jason Orchard is the Managing Director ofSpring Mountain Capital , an investment management firm specializing in alternative asset investing.
“We are pleased to welcome a new group of carefully selected directors who bring diverse and pertinent experience to ProSomnus’ leadership team at an important inflection point in the Company’s history.
ProSomnus’ FDA-cleared, Precision OAT devices are a practical alternative to legacy oral devices and CPAP machines, and can result in more effective treatment and superior patient compliance. They reposition and stabilize the jaw during sleep, improving airflow through a patient's pharyngeal space. ProSomnus Precision OAT devices consist of maxillary and mandibular aligners that are precision-manufactured with twin-mated posts, and are digitally milled to be patient-specific. Prescribed advancements can be achieved by removing the current upper- or lower-device arch and inserting the next arch in the mandibular advancement series.
“With more than 175,000 devices prescribed and a growing network of over 4,000 medical providers, ProSomnus is actively disrupting the massive OSA treatment market and, as a public company, we will now have the ability to fuel even more growth,” said
“In addition to a growing body of research, the increased adoption of ProSomnus Precision OAT devices suggests that this type of therapy is a patient-preferred alternative to legacy OSA treatment options,” continued Liptak “In 2022, we achieved several important product milestones, receiving FDA 510(k) clearance for our EVO [PH] Sleep and Snore device, and continuing the development of our next-generation device, which will feature remote patient monitoring. Access to the public capital markets will allow us to continue innovating and providing patients with cutting-edge features that can fundamentally improve the treatment and management of OSA.”
Advisors
About OSA
OSA is the recurring collapse of the airway during sleep, resulting in oxygen shortages and abrupt awakenings accompanied by gasping or choking. In addition to daytime sleepiness, OSA is associated with serious comorbidities, including heart failure, stroke, hypertension, morbid obesity and type 2 diabetes. Patients with untreated OSA are 23 times more likely to suffer a heart attack and four times more likely to have a stroke. It is estimated that more than one billion people worldwide and over 74 million people in
About ProSomnus
ProSomnus is the first manufacturer of precision, mass-customized Precision Oral Appliance Therapy devices to treat OSA, which affects over 74 million Americans and is associated with serious comorbidities, including heart failure, stroke, hypertension, morbid obesity and type 2 diabetes. ProSomnus’ patented devices are a more comfortable and less invasive alternative to Continuous Positive Airway Pressure (CPAP) therapy, and lead to more effective and patient-preferred outcomes. With more than 150,000 patients treated, ProSomnus’ devices are the most prescribed Precision Oral Appliance Therapy in the
Important Notice Regarding Forward-Looking Statements
This Press Release contains certain “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended. Statements that are not historical facts, including statements about the parties’ perspectives and expectations, are forward-looking statements. The words “expect,” “believe,” “estimate,” “intend,” “plan” and similar expressions indicate forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to various risks and uncertainties, assumptions (including assumptions about general economic, market, industry and operational factors), known or unknown, which could cause the actual results to vary materially from those indicated or anticipated.
Such risks and uncertainties include, but are not limited to: (i) the effect of the announcement or the business combination on ProSomnus’s business relationships, operating results and business generally; (ii) risks that the proposed transaction disrupts current plans and operations of ProSomnus; (iii) the outcome of any legal proceedings that may be instituted against ProSomnus or Purchaser related to the business combination; (iv) changes in the competitive industries in which ProSomnus operates, variations in operating performance across competitors, changes in laws and regulations affecting ProSomnus’s business and changes in the combined capital structure; (v) the ability to implement business plans, forecasts and other expectations after the completion of the business combination, and identify and realize additional opportunities; (vi) the risk of downturns in the market and ProSomnus’s industry including, but not limited to, as a result of the COVID-19 pandemic; (vii) costs related to the transaction and the failure to realize anticipated benefits of the transaction or to realize estimated pro forma results and underlying assumptions, including with respect to estimated stockholder redemptions; (viii) the risk of potential future significant dilution to stockholders resulting from lender conversions under the convertible debt financing; and (ix) risks and uncertainties related to ProSomnus’s business, including, but not limited to, risks relating to the uncertainty of the projected financial information with respect to ProSomnus; risks related to ProSomnus’s limited operating history, the roll-out of ProSomnus’s business and the timing of expected business milestones; ProSomnus’s ability to implement its business plan and scale its business, which includes the recruitment of healthcare professionals to prescribe and dentists to deliver ProSomnus oral devices; the understanding and adoption by dentists and other healthcare professionals of ProSomnus oral devices for mild-to-moderate OSA; expectations concerning the effectiveness of OSA treatment using ProSomnus oral devices and the potential for patient relapse after completion of treatment; the potential financial benefits to dentists and other healthcare professionals from treating patients with ProSomnus oral devices and using ProSomnus’s monitoring tools; ProSomnus’s potential profit margin from sales of ProSomnus oral devices; ProSomnus’s ability to properly train dentists in the use of the ProSomnus oral devices and other services it offers in their dental practices; ProSomnus’s ability to formulate, implement and modify as necessary effective sales, marketing, and strategic initiatives to drive revenue growth; ProSomnus’s ability to expand internationally; the viability of ProSomnus’s intellectual property and intellectual property created in the future; acceptance by the marketplace of the products and services that ProSomnus markets; government regulations and ProSomnus’s ability to obtain applicable regulatory approvals and comply with government regulations, including under healthcare laws and the rules and regulations of the
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