Zynex Medical Holdings, Inc.
Client: Zynex Medical Holdings, Inc.
Sector: Medical Devices
Transaction: PIPE ~$1 million
Through its wholly-owned subsidiary, Zynex Medical, Inc., Zynex Medical Holdings, Inc. designs, manufactures and markets a line of FDA and HealthCanada approved, non-invasive products for the electrotherapy market, including NeuroMoveTM, a unique product for stroke rehabilitation (http://www.neuromove.com). Zynex uses a direct sales force to market its standard electrotherapy and stroke rehabilitation products to both physicians and patients.
The standard electrotherapy market was estimated to be $400 to $500 million annually, with moderate growth. However, in stroke rehabilitation, Zynex recognized that penetrating an untapped potential market of more than 4 million stroke survivors in the U.S. could create a $1.2-billion sales opportunity with annual growth of $100 million. Its marquee product, NeuroMoveTM, helps rehabilitate stroke patients by "training" healthy cells to compensate for those lost or damaged in a stroke. Zynex sought Broadmark's help raising a small financing round to expand its sales and marketing teams, with the goal of increasing domestic and international market penetration in both the stroke rehabilitation and standard electrotherapy markets. Broadmark successfully facilitated the Private Placement at a price per share of $0.32 in January 2007. On October 7, 2008, the stock price was $5.15 per share.