Helius Medical Technologies Initiates Strategic Review Process to Maximize Shareholder Value

Helius Medical Technologies, a neurotech company, has initiated a strategic review process to explore alternatives for maximizing shareholder value due to limited operations and financing access caused by CMS's reimbursement payment deferral and inadequate pricing for its PoNS Mouthpiece. The company has engaged B. Riley Securities as a financial advisor to explore options such as acquisition, merger, asset sale, licensing, and other strategic transactions.

Helius Medical Technologies, a pioneering neurotech company specializing in non-implantable platform technologies for neurological deficits, has initiated a strategic review process to explore alternatives for enhancing shareholder value. The company's limited operations and financing access have been adversely affected by CMS's reimbursement payment deferral and inadequate pricing for its PoNS Mouthpiece [1].

Established in the early 1990s, Helius has a rich history rooted in neuroplasticity research at the Tactile Communication and Neurorehabilitation Laboratory (TCNL) at the University of Wisconsin-Madison. The company's flagship product, the investigational Portable Neuromodulation Stimulator (PoNS), delivers neurostimulation via the tongue, improving the effectiveness of physical exercises for individuals with neurological symptoms from diseases or trauma such as mild-to-moderate traumatic brain injury [1].

Recent financial challenges, however, have compelled Helius to reassess its strategic direction. According to a recent company announcement, Helius has engaged B. Riley Securities as a financial advisor to explore various options, including acquisition, merger, asset sale, licensing, and other strategic transactions [2].

In the second quarter of 2024, Helius reported financial results, posting a net loss of $1.9 million compared to a net loss of $1.5 million in the previous year [3]. The company attributes these financial challenges to operational challenges and the impact of the reimbursement deferral and inadequate pricing for its PoNS Mouthpiece.

Helius' financial struggles stem from CMS's reimbursement payment deferral and the inadequate pricing for its PoNS Mouthpiece, which has limited the company's revenue potential and access to financing [1]. With a strategic review process underway, Helius aims to explore options that will maximize shareholder value, potentially through acquisitions, mergers, or licensing deals.

References:
[1] Helius Medical Technologies. (n.d.). Discover PoNS. Retrieved August 16, 2024, from https://heliusmedical.com/discover-pons
[2] Helius Medical Technologies. (2024, August 12). Helius Medical Technologies to Host Second Quarter 2024 Financial Results Conference Call. Retrieved August 16, 2024, from https://www.globenewswire.com/news-release/2024/08/12/2526448/5005/en/Helius-Medical-Technologies-to-Host-Second-Quarter-2024-Financial-Results-Conference-Call.html
[3] Helius Medical Technologies. (2024, August 12). Helius Medical Technologies Reports Second Quarter 2024 Financial Results. Retrieved August 16, 2024, from https://www.globenewswire.com/news-release/2024/08/12/2526439/5004/en/Helius-Medical-Technologies-Reports-Second-Quarter-2024-Financial-Results.html