LAMF Global Ventures Corp. I (LGVC) to Combine with Nuvo Group in $269M Deal

LAMF Global Ventures Corp. I (NASDAQ:LGVC) has entered into a definitive agreement to combine with women’s health innovator Nuvo Group at a pre-money equity valuation of $269 million.

Tel Aviv-based Nuvo is committed to reinventing pregnancy care for the 21st century through new technology, tools, and practices for providers and expectant mothers.

The combined company is expected to trade on the Nasdaq under the ticker symbol “NUVO” once the deal is completed in the first quarter of 2024.

Transaction Overview

LAMF has about $31 million in its current trust after seeing 88.33% redeemed during an extension vote in May. It has until November 16 to complete a combination, but it may extend this automatically up to six months until May 15, 2024.

While Nuvo has a pre-money equity valuation of $269 million, it can be valued up to approximately $300 million upon achieving a commercial milestone.

The combined public company will be led by Nuvo’s Chief Executive Officer, Kelly Londy.

The parties have not yet filed their merger documents or an investor presentation, but LAMF’s profile page will be updated once more information is made available.

Quick Takes: Nuvo believes the field of pregnancy care is in need of modernization and is ready for revolutionary changes. The company is at the forefront of driving the transformation from traditional hospital-based care to more personalized care at home.

At the core of its offerings lies in INVU, a wireless sensory band that acts as a pregnancy monitoring system available through physician prescription. This system empowers women to gather their data and track their advancements, enabling them to collaborate with healthcare providers for comprehensive oversight.

The wearable system enables the delivery of remote non-stress tests and maternal and fetal heart rate monitoring, helping expectant women adhere to their prescribed care plan. With two FDA clearances, INVU establishes a connected healthcare journey between expectant parents and medical professionals. And by transferring the care focal point to the expectant mother, the system is designed to grant access to healthcare from any location.

Nuvo also aims to integrate AI technology into its INVU product. The data derived from INVU sessions, along with extensive pregnancy datasets, are combined to construct AI-driven models for data analysis and uncovering trends.

Novu believes that this breakthrough approach of incorporating AI has the potential to reshape pregnancy management, culminating in improved outcomes for both mothers and infants.

But, in terms of data privacy, the company guarantees that the data collected during readings adheres to HIPAA Privacy and Security Regulations and is primarily employed to enhance the precision of diagnoses and predictions.

Nuvo has already established itself as a leader in the sector through its relationship agreements with prominent U.S. entities such as Penn Medicine, Axia Women’s Health, Banner Health, Ouma, Babyscripts, and various others. These strategic partnerships have helped the company to effectively tap into the U.S. market using a comprehensive multi-channel commercial approach.

Simultaneously, the company is actively broadening its network of university hospital collaborators, which serve as pathways to global commercialization. Notable agreements have also been solidified with Charite University Hospital in Europe and Sheba Medical Center in Israel as part of this expansion effort.

At present, Nuvo holds 33 global patents, 14 of which have been secured in the United States. But, it has 22 more patents in its pipeline awaiting approval.

LAMF Global Ventures I initially signed a non-binding letter of intent (LOI) with Nuvo earlier this year in April. The $269 million valuation remains the same, but at that time, the SPAC mentioned that this valuation excluded a seller earnout of approximately $31 million. LAMF’s Co-CEO and Chairman Jeffrey Soros along with affiliates of 10X Capital also stated that they committed to make a financial investment in Nuvo in connection with the entry into a definitive agreement, but further details have yet to be disclosed.

However, this isn’t Nuvo’s first shot at going public. The company originally began its efforts to join the public markets back in November 2021, when it filed an S-1 for $50 million. This was later amended to $10 million, and interestingly enough, one investor, Axxion, wanted to purchase 100% of the IPO. But, Nuvo withdrew the IPO months later in January 2022.

Now, Nuvo is exploring a different route to going public and joins a flock of seven other healthcare SPAC deals concentrating on medical devices that have been unveiled this year, one of which, Allurion (NYSE:ALUR), has already been completed. However, Nuvo stands out as the pioneer among these firms, directing its attention towards pregnancy care.

LAMF announced the pricing of its upsized $220 million IPO in November 2021 and initially set out to combine with a company that is growth-oriented and prioritizes its relationship directly with consumers in the dynamic world of media, entertainment, sports, e-commerce and technology. The LAMF team intends to use their relationships in the worlds of media, entertainment and healthcare to accelerate the adoption of Nuvo’s pregnancy care products.

ADVISORS

• Company
  • Greenberg Traurig, P.A. and Meitar are serving as legal counsel.
• SPAC
  • White & Case LLP and Herzog Fox & Neeman are serving as legal counsel.
  • Roth Capital Partners, LLC is serving as capital markets advisor.