UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 8.01 | Other Events. |
As previously disclosed, on January 30, 2019, Ekso Bionics Holdings, Inc. (the “Company”) and its wholly-owned subsidiary, Ekso Bionics, Inc. (“Ekso US”), entered into an agreement with Zhejiang Youchuang Venture Capital Investment Co., Ltd and another partner (collectively, the “JV Partners”), as amended by the Amendment to the Joint Venture Agreement, dated April 30, 2019 (as amended, the “JV Agreement”) to establish Exoskeleton Intelligent Robotics Co. Limited (the “China JV”), a Chinese limited liability company designed to develop and serve the exoskeleton market in China and other Asian markets and to create a global exoskeleton manufacturing center in the Zhejiang Province of China. In connection with the China JV, parties designated by the JV Partners purchased an aggregate of 204,499 shares of the Company’s common stock at a price per share equal to $24.45, for aggregate proceeds to the Company of $5.0 million.
Following U.S. government inquiries regarding the China JV, the Company and the JV Partners formally submitted a joint voluntary notice to Committee on Foreign Investment in the United States (“CFIUS”) in December 2019 to review the transaction. CFIUS subsequently inquired about the Company’s legacy work for the U.S. government as well as technology transfers and other aspects of the China JV and, in February 2020, imposed interim measures to mitigate identified concerns pending completion of its investigation. These measures temporarily suspended the Company’s contributions to the China JV and other integration activities for the China JV.
On May 20, 2020, the Company reported that it had received notice from CFIUS in connection with its review of the transaction that CFIUS’s prior national security concerns regarding the China JV could not be mitigated.
In connection with such determination, on July 13, 2020, the Company and the JV Partners entered into a National Security Agreement (“NSA”), which, among other things, requires the termination of the Company’s agreements and role with the China JV. The Company intends to work cooperatively with the JV Partners and CFIUS to implement the terms of the NSA.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
EKSO BIONICS HOLDINGS, INC. | |||
By: | /s/ John Glenn | ||
Name: | John Glenn | ||
Title: | Chief Financial Officer |
Dated: July 17, 2020