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BANGKOK, March 08, 2025 (GLOBE NEWSWIRE) -- NewGenIvf Group Limited (NASDAQ: NIVF) (“NewGen” or the “Company”), a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments, today announced an update on its proposed reverse merger with healthcare company European Wellness Investment Holdings Limited (“EWIHL”) and its completion of its acquisition of MicroSort Reproductive Technology.
On December 11, 2024, the Company announced its entry into a binding term sheet with EWIHL for a reverse merger, in which EWIHL would on completion hold approximately 61.6% of the Company’s equity (the “EWIHL Proposed Transaction"). The completion of the EWIHL Proposed Transaction is subject to, among other matters, the completion of due diligence, the delivery of draft audited financials for the years ending 2023 and 2024 (the “Draft Financials”) of EWIHL by March 31, 2025, and the negotiation of a definitive agreement. As of the date of this press release, EWIHL has not delivered Draft Financials to the Company, and key due diligence documents remain pending. As such, the parties have yet to enter into a definitive agreement regarding the EWIHL Proposed Transaction. There can be no assurance that due diligence will be completed in a manner satisfactory to the Company for entry into definitive agreements, and the Draft Financials will be delivered by March 31, 2025. If the Draft Financials are not delivered by March 31, 2025, NewGen shall exercise its right to terminate the term sheet at no cost to the Company.
On February 28, 2025, the Company completed its acquisition of MicroSort Reproductive Technology. The Company’s entry into a definitive agreement to acquire the MicroSort Technology was previously announced in its press release dated January 21, 2025. The Company intends to continue to evaluate strategic acquisition opportunities that align with its long-term growth strategy. There can be no assurance, however, that the Company will identify or complete any such opportunities on terms acceptable to the Company or at all.
Mr. Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen, commented, “While we have been diligently working toward the completion of the proposed transaction with EWIHL, certain key milestones in the process, including the delivery of draft audited financials, remain outstanding as we approach our March 31 deadline. We have maintained a disciplined approach to this potential combination, with clear requirements and conditions that must be met to ensure the transaction creates optimal value for our shareholders. Should these conditions not be satisfied by the deadline, we are prepared to exercise our right to terminate the term sheet at no cost to our company. Since September 24, we have successfully transformed our financial standing from a deficit of $7 million to a surplus of over $10 million as of February 28 this year, achieving a net asset increase of $17 million over the five-month period. This improvement has resulted in a net asset value per share of $2.16 at the end of February. With only US$50,000 debt on our balance sheet, this solid foundation allows us to explore multiple strategic opportunities from a position of strength. We will continue to execute on our core business initiatives going forward, and we remain confident in our ability to deliver sustainable growth and shareholder value, independent of any single transaction.”