Vivani Medical has agreed to merge its neurotech subsidiary, Cortigent, with comms equipment specialist ClearOne in a move that will create a new entity and take Vivani’s brain-computer interface (BCI) business public.
Upon completion of the transaction, which is expected to close in Q3 2026, Cortigent and Nasdaq-listed ClearOne will operate as a new entity, Cortigent Holdings, and trade under ticker symbol ‘CRGT’.
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Under the deal’s terms, Vivani will receive 12.5 million shares of ClearOne’s common stock and own 59.4% to 67.5% of the outstanding equity in the newly combined company, with ClearOne’s former shareholders set to own 12.7% to 14.4%.
ClearOne’s main business is in professional audio, video, and collaboration systems for boardrooms, classrooms, and large meeting venues. With the merger complete, this business will become a non-core legacy business within the new holding company.
Following the merger’s announcement, ClearOne’s shares on the Nasdaq stock exchange rose by over 100% to a market close of $6.48 on 2 July, up from $3.60 per share at market open. ClearOne has a market cap of $17.34m.
In confluence with the transaction, ClearOne will raise $10m-$15m via a share offering to support the advancement of Cortigent Holding’s product pipeline.
The products underpinning the new company include Orion, a BCI implant for artificial vision restoring vision, and Argus II, a surgically implanted retinal prosthesis designed to provide ‘artificial vision’ to individuals with severe retinitis pigmentosa.
Cortigent inherited these products following the merger of original developer Second Sight Medical with Nano Precision Medical in 2022, from which point the combined entities were renamed as Vivani.
Vivani’s Cortigent is also currently developing a new device based on its foundational BCI technology to hasten the recovery of arm and hand mobility following partial paralysis due to stroke.
California-based Vivani’s CEO, Adam Mendelsohn, said the agreement will serve to reduce its direct expenditures relating to Cortigent, allowing the biotech to focus more fully on advancing its core portfolio of long-acting drug implants.
Eric Robinson, ClearOne’s board chair, commented: “I am excited to announce this transaction. In my view, Cortigent’s mission, to help patients recover sight and motor function through precision neurostimulation, is compelling given both the technical outlook for their neurostimulation technology and the significant unmet market needs that this technology seeks to address.
“We anticipate that the planned financing will give the combined company a strong foundation to move its pipeline forward.”
GlobalData analysis reveals that the global neurology devices market is projected to reach a valuation of over $25bn in 2034. BCI technologies in healthcare are advancing at a rapid pace, with Morgan Stanley estimating there to be an early total addressable market (TAM) of $80bn across three million US adults for BCI technology, a figure that could potentially reaching $320bn with further advancements.
