Baird Medical & ExcelFin Acquisition Corp Update Business Combination Terms for Long-Term Value Creation & Shareholder Alignment

Fort Mill, South Carolina – March 13, 2024 – Betters Medical Investment Holdings Limited (“Baird Medical” or the “Company”), a leading microwave ablation (“MWA”) medical device developer and provider in China and the United States, and ExcelFin Acquisition Corp. (“ExcelFin”) (NASDAQ: XFIN), a publicly traded special purpose acquisition company, today announced a strategic update to their previously announced business combination agreement. Baird Medical and ExcelFin believe the revised terms reinforce the long-term value creation opportunity for shareholders.

In December 2021, China’s National Medical Products Administration (“NMPA”) announced that it would no longer apply Class II certifications for medical devices intended for human body insertion, but would subject such devices which include MWA devices, to the more stringent Class III certification, effective immediately. Baird Medical’s Class II certificate expired during March 2023, and its new Class III certificate was approved in July 2023, after Baird Medical spent four years to obtain its Class III certificate. Baird Medical is one of only four entities to hold Class III certificates for MWA devices for thyroids, with other competitors who previously relied on Class II certificates locked out of the market until they upgrade to Class III certificates.

Given the high demand for the Company’s products, and in anticipation of the nationwide transition to Class III licenses, Baird Medical’s distributors and hospitals built up substantial stocks of its needles during 2022. This accumulated inventory was then utilized during 2023, leading to a subsequent decline in sales of the Company’s needles. At the same time, the Company faced administrative delays in re-registering its Class III product, with significant delays in certain provinces causing extended sales pipelines. The combination of these factors, coupled with the prevailing macro environment in China, resulted in Baird Medical recording 2023 revenues 29% below its previously disclosed projections. The updated transaction terms were in part driven by Baird Medical’s lower than expected 2023 results.

To facilitate broader acceptance of its MWA procedure, the Company is in active discussions with local Chinese authorities to include the treatment in a greater number of provincial medical insurance policies. These efforts have resulted in fourteen provinces in China providing partial reimbursement for the procedure as of the end of 2023, up from nine at the end of 2022. Beijing, Shanghai, Hubei, Henan and Shaanxi are the important regional markets that currently include Baird Medical products in their insurance coverage. Furthermore, Baird Medical aims to increase the percentage of the procedure’s expenses eligible for reimbursement under Chinese provincial health insurance schemes. At the same time, the Company is engaged in collaborative initiatives with distributors and medical professionals to educate patients on the necessity of undergoing the procedure at an early stage.

Ms. Haimei Wu, Founder and CEO of Baird Medical, commented, “The updated business combination terms signal our confidence in our positive free cash flow generation capabilities and our ability to resiliently navigate through macro headwinds while generating revenue and profitability growth. Notably, we have agreed to subject 30% of the Baird Medical shares to an earnout, with vesting achieved if the volume-weighted average price is greater than or equal to $12.50 over any 20 trading days within a 30-day trading period, demonstrating our confidence in Baird Medical’s long-term prospects In addition, we have made the strategic decision to waive the previously agreed upon minimum cash condition of $15 million. Today’s announcement is a testament to our commitment to delivering significant upside potential and long-term value for both current ExcelFin shareholders as well as future shareholders of Baird Medical.”

Baird Medical remains optimistic regarding its significant upside potential and long-term value creation. “Baird has completed a series of pilot MWA procedures in the U.S. and is engaged in discussions with six major medical institutions,” Ms. Wu noted. “These include Tulane Medical Center, Weill Cornell Medicine, Stanford Medicine, Johns Hopkins Medicine, NYU School of Medicine, and Columbia University, as well as private clinic doctors. With our proven technology adaptable to a range of indications, our expanded geographical footprint, and a sizable total addressable market, we are optimistic that Baird Medical is well-positioned to deliver long-term sustainable value for shareholders.”

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