Sale reduces liabilities by $17.6 million and entails at least $24 Million in future payments
LAS VEGAS, March 22, 2023 /PRNewswire/ -- JanOne (Nasdaq: JAN), a biopharmaceutical company specializing in developing non-addicting pain killers and treatments for underlying causes of pain, announced that on March 9, 2023 they entered into a Stock Purchase Agreement with VM7, a Delaware corporation, under which VM7 agreed to acquire all of the outstanding equity interests of ARCA Recycling, Inc, Customer Connexx LLC and ARCA Canada Inc. Virland Johnson, who has served as ARCA Recycling's CFO and COO for several years is the principal of VM7.
Sale reduces liabilities by $17.6 million and entails at least $24 Million in future payments .
JanOne's Board of Directors unanimously approved the sale, which reduced its liabilities on their consolidated balance sheets by $17.6 million and stipulated that JanOne is to receive not less than $24 million in future monthly aggregate payments over the agreement's term.
ARCA Recycling recycles household appliances by providing turnkey recycling and replacement services for utilities and other sponsors of energy efficiency programs. Customer Connexx is their Las Vegas based call center business and ARCA Canada is the Canadian arm of their appliance recycling business. "I'm excited to be taking on ownership of ARCA Recycling," said Virland Johnson. "I plan to further our mission of environmental stewardship and to ensure sustained, profitable growth over many years to come."
Tony Isaac, JanOne's CEO, commented on the sale: "I wish ARCA Recycling's new owner continued success in their business. This sale will allow JanOne to focus wholly on therapeutics where we see enormous potential for growth benefiting our shareholders. Our leadership team looks forward to continuing to bring non-addictive pain-relieving alternatives to market in an effort to reduce opioid abuse."
Forward Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the statements that JAN 101 will treat PAD, that JAN 123 will treat CRPS, the timing of the commencement of further clinical trials, that the FDA will permit approval through a 505(b)(2) pathway for JAN 123, that upon approval JAN 101 will immediately disrupt the PAD market, and other statements, including words such as "continue", "expect", "intend", "will", "hope" "should", "would", "may", "potential" and other similar expressions. Such statements reflect JanOne's current view with respect to future events, are subject to risks and uncertainties, and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by JanOne, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause JanOne's actual results, performance or achievements to be materially different from any future results, performance or achievements described in this press release. Such factors could include, among others, those detailed in the Company's periodic reports filed with the Securities and Exchange Commission (the "SEC").
Should one or more of these risks or uncertainties materialize, or should the assumptions set out in the section entitled "Risk Factors" in JanOne's filings with the SEC underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this press release and JanOne does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. JanOne cannot assure that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Individuals are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
About JanOne Inc.
JanOne is a unique Nasdaq-listed company offering innovative, actionable solutions that it believes can help create an end to the opioid crisis. JanOne is dedicated to funding resources toward innovation, technology and education to find a key resolution the national opioid epidemic, which is one of the deadliest and widespread in the country's history.
Please visit www.janone.com for additional information.
Media Contact:
ir@janone.com
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SOURCE JanOne Inc.
