Avalon GloboCare Announces Closing of Strategic Investment in Laboratory Services MSO, a Leading Clinical Diagnostics and Reference Laboratory Company
Avalon GloboCare Corp. (NASDAQ: ALBT) announced the acquisition of a 40% stake in Laboratory Services MSO, LLC for $21 million. The deal includes $9 million in cash, $11 million in Series B preferred stock, and $1 million due in 2024. The preferred shares will be restricted for 12 months and are subject to a leak-out provision. LSM is known for its diagnostic tests across various areas and has conducted over 600,000 tests. Avalon anticipates this transaction will boost earnings and enhance its portfolio. An exclusive option allows Avalon to acquire an additional 20% of LSM within nine months for $6 million in cash and additional shares.
- Acquisition expected to be accretive to earnings.
- Strengthened clinical synergies with Avalon’s existing portfolio.
- Exclusive option to acquire an additional 20% of LSM enhances future growth potential.
- LSM has a strong reputation with over 600,000 completed tests.
- None.
Transaction Expected to Be Accretive to Earnings Through Profit Sharing Agreement
Adds Strong Clinical Synergies to Existing Avalon Portfolio
Marks Launch of New Roll-Up Strategy Targeting Toxicology and Pharmacogenetic Laboratories
FREEHOLD, N.J., Feb. 13, 2023 (GLOBE NEWSWIRE) -- Avalon GloboCare Corp. (“Avalon” or the “Company”) (NASDAQ: ALBT), a leading global developer of innovative cell-based technology, cellular therapy and precision diagnostics, today announced that it has acquired a
Total consideration for the transaction was
In connection with the transaction, the parties entered into an operating agreement, whereby the Company will receive a pro rata percentage of LSM’s net income. The Company also has an exclusive option for nine months to purchase an additional
David Jin, M.D., Ph.D., President and Chief Executive Officer of Avalon, commented, “We are excited to close this initial investment as a first step, and anticipate acquiring a controlling interest within the next nine months. Not only is this transaction expected to be accretive to our earnings, we believe it also adds strong clinical and roll-up synergies to the existing Avalon portfolio and future growth plan. By combining LSM’s established infrastructure with Avalon’s cutting-edge diagnostic and cellular immunotherapy platforms, it provides us with an established roadmap and framework in the context of integrating our CellTech/therapeutic programs with precision medicine.”
“Our goal is to take advantage of a unique roll-up opportunity within the highly fragmented market for laboratory testing and services. By targeting laboratories with exceptional performance, positive revenue track record and niche-market advantage, we believe we can effectively leverage LSM’s experience and infrastructure to achieve significant synergies with respect to revenue growth and market shares,” concluded Dr. Jin.
A more complete description of the transaction will be included in a Current Report on Form 8-K to be filed by the Company with the U.S. Securities and Exchange Commission (“SEC”), which will be available at the SEC’s website at www.sec.gov.
About Avalon GloboCare Corp.
Avalon GloboCare Corp. (NASDAQ: ALBT) is a clinical-stage biotechnology company dedicated to developing and delivering innovative, transformative cellular therapeutics, precision diagnostics, and clinical laboratory services. Avalon also provides strategic advisory and outsourcing services to facilitate and enhance its clients’ growth and development, as well as competitiveness in healthcare and CellTech industry markets. Through its subsidiary structure with unique integration of verticals from innovative R&D to automated bioproduction and accelerated clinical development, Avalon is establishing a leading role in the fields of cellular immunotherapy (including CAR-T/NK), exosome technology (ACTEX™), and regenerative therapeutics. For more information about Avalon GloboCare, please visit www.avalon-globocare.com.
For the latest updates on Avalon GloboCare’s developments, please follow our twitter at @avalongc_avco
Forward-Looking Statements
Certain statements contained in this press release may constitute “forward-looking statements.” Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact, including statements regarding the transaction and the business of Laboratory Services. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors as disclosed in our filings with the Securities and Exchange Commission located at their website (http://www.sec.gov). In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of the press release.
Contact Information:
Avalon GloboCare Corp.
4400 Route 9, Suite 3100
Freehold, NJ 07728
PR@Avalon-GloboCare.com
Investor Relations:
Crescendo Communications, LLC
Tel: (212) 671-1020 Ext. 304
albt@crescendo-ir.com
FAQ
What acquisition did Avalon GloboCare announce on February 13, 2023?
How much did Avalon spend on the acquisition of LSM?
What are the key components of Avalon’s acquisition deal for LSM?
What benefits does Avalon expect from the acquisition of LSM?