Eden Prairie-based Sanuwave Health seeks Nasdaq listing in SPAC deal

Sanuwave Health Inc., an Eden Prairie-based wound care company, plans to join the Nasdaq stock exchange in a merger deal with a special purpose acquisition company.

Sanuwave announced last week it will merge with Houston-based SEP Acquisition Corp., a blank-check company that is traded on the Nasdaq exchange.

The combined company will have an enterprise value of $127.5 million. The deal is expected to close by the end of the year.

Sanuwave has two FDA-approved devices that use patented energy transfer technologies for wound healing and other conditions. Its lead product is the UltraMIST System.

Sanuwave was founded in 2004 and relocated from Georgia to Minnesota in 2022.

The company completed raising $12 million through a private placement in August 2022. In a news release, Sanuwave said some of those proceeds would be used to "begin the Nasdaq up-listing process."

Sanuwave is currently listed on an over-the-counter exchange.

"This is the next step in putting the company on sound footing that will allow us to focus on rapid, profitable growth and to garner an equity valuation commensurate with our performance," Sanuwave CEO Morgan Frank said in a statement.

Frank was named CEO of the company in May.

Earlier this month Sanuwave reported second-quarter revenue of $4.7 million, an increase of 20% from a year ago.

Eden Prairie-based Celleration Inc. originally developed the MIST Therapy and UltraMIST systems. Celleration was sold for $30 million in 2015.

Sanuwave acquired UltraMIST, then owned by a New Jersey company, in a deal in 2020.

SEP Acquisition (SEPA), formerly Mercury Ecommerce Acquisition Corp., raised $175 million in an initial public offering in July 2021.

"We've already begun working with Sanuwave to open new distribution opportunities and markets," SEPA CEO Andrew White said in a news release. "We believe very strongly in this company and the UltraMIST product."