It is rare to see a spinoff record date announced and then retracted, underscoring both the speculative nature of this deal and the fragile financial footing of both Vivani and Cortigent.
Cortigent Spinoff Timeline from Announcement to Delay
- May 2025: Vivani announced plans to spin off Cortigent, creating an independent neuromodulation company. (announcement)
- May 2025: Cortigent filed its Form 10 registration statement, disclosing pipeline details and governance.
- September 2025: Vivani announced an October 8 record date for the spinoff.
- October 3, 2025: The company withdrew the record date, citing the government shutdown.
The withdrawal is almost without precedent. Once a record date is set, companies typically proceed to distribution—even if filings or regulatory matters are still pending. It’s also not at all clear why the government shutdown should have any impact on this. Maybe the SEC can’t declare registrations effective?
Vivani Medical After Shedding Cortigent
Vivani’s strategy centers on its NanoPortal™ implant technology, designed to deliver long-acting GLP-1 therapies for obesity and diabetes. By spinning off Cortigent, Vivani hopes to sharpen its identity as a pure-play implantable drug delivery company.
The problem is funding. As of June 30, 2025, Vivani reported cash and equivalents of just $6.8 million, with equity purchase agreements totaling $21.25 million through mid-2026. Operating expenses exceed $7 million per quarter, meaning dilution is likely.
Vivani needs to convince investors that focusing on GLP-1 implants will create value. But the loss of Cortigent also removes the diversification of having neuromodulation as a second story. Post-spinoff, VANI will remain a small, cash-hungry biotech with high dependence on new capital raises.
Cortigent (CRGT) as a Standalone Neuromodulation Spinoff
Cortigent’s pipeline is ambitious. The flagship program is the Orion® Visual Cortical Prosthesis System, a brain implant aiming to restore vision to patients with blindness. A six-year feasibility study completed in 2025 suggested Orion could provide consistent, though partial, restoration of visual perception.
The second major program targets stroke rehabilitation, using neurostimulation to restore movement in patients with paralysis. Both programs have long development timelines and uncertain commercial prospects.
As a standalone, Cortigent will be extremely thinly capitalized. With no revenues and expensive clinical programs, CRGT will likely need to raise equity almost immediately. For public investors, this means high dilution risk from the start.
Unusual Record Date Withdrawal Highlights Spinoff Risk
The decision to withdraw the October 8 record date is not just a logistical hiccup. It signals how fragile the transaction is. Investors often take announced record and distribution dates as binding commitments; pulling one back erodes confidence.
Blaming the government shutdown is itself notable—few companies tie spinoff execution so directly to political events. The move illustrates how exposed a micro-cap like Vivani is to any disruption. Larger, better-capitalized spinoffs typically proceed even through government slowdowns.
Cortigent (CRGT) and Vivani (VANI) Offer Optionality but Carry Extreme Risk
Together, Vivani and Cortigent are a case study in micro-cap spinoffs:
- VANI hopes a narrower focus on drug implants will make it more attractive, but cash is tight and dilution is looming.
- CRGT gives investors a pure neuromodulation play, but without significant new capital, the programs may never reach pivotal trials.
- Both securities will trade as high-beta speculative vehicles, moving on clinical headlines rather than fundamentals.
Investors interested in Cortigent should treat it as a binary bet: either Orion or stroke rehab devices make clinical and regulatory progress, or CRGT burns cash and declines rapidly.
Disclosure: The author holds no position in any stock mentioned.
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