Tivic Health to Acquire Reliefband Assets

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Company intends to significantly expand product offering in bioelectronic nausea treatment

The CEO will host a conference call/webcast with investors on Wednesday, October 19e at 1:30 p.m. PT / 4:30 p.m. ET

Tivic Health® SystemsInc. (Nasdaq: TIVC) (“Tivic Health”), a commercial-stage health technology company focused on bioelectronic medicine, today announced that it has entered into a definitive agreement to acquire the Reliefband product line. for the treatment of nausea and all related assets of Reliefband Technologies, LLC.

Reliefband has been an innovator in portable, FDA-approved electronic therapies for the treatment of nausea and vomiting. Reliefband offers several products available over the counter and on prescription.

“We are extremely excited to add the full line of Reliefband products to our commercial portfolio,” said Jennifer Ernst, CEO of Tivic Health. “The Reliefband team successfully launched a direct-to-consumer business model for medical products. This acquisition, combined with the growth of our ClearUP direct-to-consumer sales, will significantly accelerate Tivic’s revenue opportunities. »

Recurrent nausea affects approximately 1 in 6 American adults. According to QY Research, the treatment of nausea represents a $2.4 billion market in the United States and $5.5 billion worldwide, with a CAGR of 6 .5%.

Reliefband’s wrist-worn electronic nerve stimulators have been approved by the FDA for the treatment of nausea associated with seven independent clinical indications, including motion sickness nausea, pregnancy, migraines, anxiety, chemotherapy, various medications and the hangover.

The patented products are backed by 40 peer-reviewed clinical studies and have generated over 3,500 Amazon reviews with an average of 4+ stars.

Reliefband and ClearUP products provide consumers with ways to manage health issues without the problems and side effects often associated with medication use. Both are FDA approved, highly effective, fast acting, convenient and drug free. Both are currently sold primarily online, and both have been CE marked allowing for international expansion.

In addition to Reliefband-branded direct-to-consumer products, Tivic will also acquire Reliefband’s Reletex-branded prescription nausea treatments. Reletex products are currently distributed by hospitals and healthcare professionals and are reimbursed under the HCPCS code E0765 for certain conditions.

“We look forward to expanding Tivic with the addition of clinically proven, revenue-generating bioelectronics products that have seen strong customer adoption and growth,” Ernst continued.

The consideration to be provided by Tivic consists of a maximum of $33.5 million, of which up to $1.5 million may be paid, upon election of Tivic, in restricted common stock of Tivic. The consideration is subject to working capital adjustments, less Reliefband’s transaction fees and any indebtedness of Reliefband at closing.

The transaction is expected to close in the fourth quarter of 2022 or the first quarter of 2023 following the satisfaction of certain customary closing conditions, including, but not limited to, obtaining the necessary financing to pay the purchase price. Additional information about the transaction can be found in a current report on Form 8-K filed by Tivic with the Securities and Exchange Commission (SEC).

Jennifer Ernst, CEO of Tivic Health, will host a conference call/webcast for investors on Wednesday, October 19, 2022 at 1:30 p.m. PT / 4:30 p.m. ET.

Teleconference details:

Toll Free: 888-506-0062

International: 973-528-0011

Participant access code: 533904

Webcast link:

https://www.webcaster4.com/Webcast/Page/2865/46849

About Tivic

Tivic Health Systems, Inc. is a commercial-stage health technology company providing non-invasive bioelectronic treatments that provide consumers with choice in the treatment of inflammation and immune system-related conditions. For more information, visit https://tivichealth.com @TivicHealth.

Forward-looking statements

This press release may contain “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements in this press release can be identified by the use of words such as “anticipate”, “believe”, “contemplate”, “could”, “estimate”, “expect”, “have the ‘intent’, ‘seek’, ‘can’, ‘could’, ‘plan’, ‘potential’, ‘predict’, ‘project’, ‘target’, ‘aim’, ‘should’, ‘will’ ‘would’ , or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the current expectations of Tivic Health Systems, Inc. and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. In addition, certain forward-looking statements are based on assumptions about future events which may not prove to be accurate. Actual results could differ materially from those contained in any forward-looking statement due to a variety of factors, including, without limitation: risks and uncertainties regarding the possibility that Tivic and Reliefband may not be able to complete the contemplated transaction , and even if they do complete it, that the expected benefits of the operation are not achieved; market and other conditions; the risks that the ongoing COVID-19 pandemic could disrupt Tivic’s or Reliefband’s business more severely than to date or more severely than expected; unforeseen costs, charges or expenses that reduce Tivic’s capital resources; Tivic’s inability to raise sufficient capital to fund the purchase price as well as its existing operations; Tivic’s inability to innovate and attract users for Reliefband’s products. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. For a discussion of other risks and uncertainties, and other important factors, each of which could cause Tivic’s actual results to differ from those contained in the forward-looking statements, see Tivic’s filings with the SEC, including including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on March 31, 2022, under the heading “Risk Factors”, as well as the company’s subsequent filings with the DRY. The forward-looking statements contained in this press release are made as of this date, and Tivic Health Systems, Inc. undertakes no obligation to update such information except as required by applicable law.

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