Vivos Therapeutics Completes Acquisition of The Sleep Center of Nevada

Core Insights - Vivos Therapeutics has completed the acquisition of The Sleep Center of Nevada (SCN), enhancing its diagnostic revenue and expanding its treatment options for obstructive sleep apnea (OSA) patients in the Las Vegas area [1][2] - The acquisition marks a strategic pivot in Vivos' business model, shifting focus from dental providers to collaborations with medical sleep practices, allowing for immediate revenue capture from OSA diagnostics and consultations [3][6] - Vivos has secured over $11 million in financing, including a senior secured loan and an equity private placement, to support the integration of SCN and future growth initiatives [9][11] Acquisition Details - The SCN transaction is Vivos' first major acquisition of a sleep testing center, expected to generate higher-margin revenue from both diagnostics and sales of Vivos' OSA treatment devices [2][5] - SCN serves approximately 3,000 new patients monthly and has generated annual net revenues in the high seven-figure range, making it the largest sleep testing center in Nevada [5][6] - Vivos will manage SCN's operations and capture diagnostic and consulting revenues, with plans to expand treatment offerings across additional SCN locations over the next 12 to 18 months [7][11] Financial Aspects - The acquisition involved a cash payment of $6 million and $1.5 million in Vivos common stock, with potential future stock payments based on financial milestones [8] - Vivos financed the acquisition through an $8.225 million senior secured loan, which includes a $675,000 original issuance discount, and an additional $3.755 million equity investment from New Seneca Partners [9][10] - The financing will provide essential cash resources for Vivos to integrate SCN and pursue further growth opportunities [11] Strategic Outlook - Vivos is actively seeking additional collaborations or acquisitions to further expand its business in 2025 and beyond [4] - The company anticipates significant benefits from the SCN acquisition, including reduced cash burn and a move towards cash flow positivity as patient volumes increase [12]