Applied UV, Inc. Announces Non-Binding Letter of Intent to Acquire the Airocide(TM) System for Airborne Pathogen Reduction

Rhea-AI Summary

Applied UV, Inc. (NASDAQ:AUVI) has signed a non-binding letter of intent to explore acquiring certain assets of Akida Holdings LLC, including the Airocide™ air purification technology, for up to $12 million. The acquisition aims to facilitate applications across various sectors, including healthcare and hospitality. The Airocide™ system, developed for NASA, demonstrates efficacy in eliminating airborne pathogens and has gained widespread use among notable brands. This transaction is contingent upon due diligence, board approvals, and the negotiation of a definitive agreement.

Positive

• Potential acquisition of Airocide™ may enhance Applied UV's product offerings and market reach.
• Airocide™ technology is clinically proven to eliminate over 99.99% of airborne pathogens, improving the company's credibility and applications in critical sectors.

Negative

• The acquisition is non-binding, meaning there is no guarantee it will proceed.
• The deal is contingent on Akida achieving significant EBITDA increases, which introduces uncertainty.

MOUNT VERNON, NY / ACCESSWIRE / November 9, 2020 / Applied UV, Inc. (NASDAQ:AUVI) ("Applied UV" or the "Company"), an infection prevention technology company that applies the power of ultra violet C ("UV-C") light utilizing its patented devices to destroy pathogens, including bacteria and viruses, safely, thoroughly, and automatically, today announced that in addition to its exclusive Joint Distribution and Licensing Agreement with Akida Holdings LLC ("Akida") that was announced in a press release on September 8, 2020, it has signed a non-binding letter of intent (the "LOI") to explore the possibility of acquiring certain key assets of Akida, including Akida's rights to the manufacture and sale of the Airocide™ System of patented, air purification technologies, which may aid in the reopening of the global economy with applications in the hospitality, hotel, healthcare, nursing homes, grocer, wine, commercial buildings and retail sectors, for up to a maximum of $12,000,000, subject to Akida Holdings obtaining significant EBITDA increases over the next two years, along with a clawback and a two year lockup of restricted Applied UV stock.

The Airocide™ system, originally developed for NASA by the University of Wisconsin, is an airborne pathogen killing technology that uses a patented combination of UVC and a proprietary, titanium dioxide based photocatalyst. The Airocide™ technology is clinically proven and field tested to kill/remove/eliminate airborne pathogenic and non-pathogenic microorganisms, allergens, odors and harmful VOC's in a variety of applications and industries including healthcare, hospitality, grocery chains, wineries, commercial real estate, schools, dental offices, cannabis, and homes. Airocide™ has been featured on "CNN", "Fox News Networks", "Maxim" and "The Ellen Show". The Airocide™ technology is widely accepted and is currently used by nationally recognized brands such as "Whole Foods", "Delmonte", "Dole", "Chiquita", "Opus One" "Sub-Zero Refrigerators" and "Robert Mondavi Wines" to name a few.

Akida has agreed to cooperate with Applied UV's due diligence process and not actively pursue parallel alternative sale or financing alternatives until the earlier of the execution of a definitive agreement and March 2, 2021.

The potential acquisition is exploratory and is subject to, among other things, the completion of due diligence, approval of the two companies' boards, the negotiation and execution of a definitive agreement providing for the transaction, and satisfaction of any conditions negotiated therein. Accordingly, there can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.

About Airocide and Akida Holdings LLC

Akida Holdings LLC, headquartered in Jacksonville, Florida, owns the exclusive world-wide rights to a unique NASA developed air purification technology, Airocide™. The Airocide™ technology has been clinically tested by the University of Wisconsin, Texas Tech University, and Texas A&M University. Airocide's patented technology has been proven to eliminate greater than 99.99%of certain biological contaminants that enter its system Additional information can be found at www.airocide.com. Applied UV makes no representations with respect to the accuracy of the information on such website.

About Applied UV

Applied UV is focused on the development and acquisition of technology that address infection prevention in the healthcare, hospitality, commercial and residential markets. Our products utilize disinfection technology that applies the power of UVC to destroy pathogens safely, thoroughly, and automatically. The Company's SteriLumen technology was tested at an independent laboratory that found the SteriLumen Disinfection System to be greater than 99.99% effective in killing the OC43 human coronavirus, a strain of human coronavirus that is genetically similar to SARS-CoV-2. According to the independent laboratory, it is expected that SARS-CoV-2, the virus that causes COVID-19 will be killed in a similar manner to OC43. The Company has two wholly owned subsidiaries; SteriLumen and Munn Works, LLC ("Munn Works"). SteriLumen develops disinfection devices and technology that combat hospital acquired infections (HAIs). We formed a team to solve and patent a product and process to neutralize pathogens providing a compelling solution for the hospitality space and a solid path to entering the healthcare market. MunnWorks manufactures fine mirrors specifically for the hospitality industry. Our goal, at Munn Works, is to contribute to the creation of what our design industry clients seek: manufacturing extraordinary framed mirrors.

For more information about Applied UV, Inc., and its subsidiaries, please visit the following websites: https://www.applieduvinc.com/; https://sterilumen.com/; and, https://munnworks.com/.

Forward-Looking Statements

The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. Such statements include, but are not limited to, statements contained in this press release relating to the view of management of Applied UV concerning its business strategy, future operating results and liquidity and capital resources outlook. Forward‐looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company's actual results may differ materially from those contemplated by the forward‐looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward‐looking statements. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward‐looking statements to conform these statements to actual results.

Applied UV Investor Relations

Kevin McGrath
TraDigital IR
+1-646-418-7002
kevin@tradigitalir.com

MJ Clyburn
TraDigital IR
+1-917-327-6847
clyburn@tradigitalir.com

SOURCE: Applied UV, Inc.

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FAQ

What is the significance of Applied UV's letter of intent with Akida Holdings?

The letter of intent indicates Applied UV's interest in acquiring Airocide™, aiming to expand its infection prevention technology portfolio.

How much is Applied UV potentially spending on acquiring Airocide™?

Applied UV may spend up to $12 million on the acquisition, subject to performance conditions.

What industries will benefit from the Airocide™ system?

Airocide™ is applicable in hospitality, healthcare, commercial buildings, and retail sectors.

What are the next steps for the potential acquisition of Airocide™?

The acquisition depends on due diligence, board approvals, and negotiations for a definitive agreement.