ProPhase Labs closes $23.6M sale of Pharmaloz Manufacturing

ProPhase Labs (PRPH) announced the closing of the sale of its wholly-owned subsidiaries, Pharmaloz Manufacturing Inc. and Pharmaloz Real Estate Holdings, to a private equity group based in Houston, Texas. The transaction carries an aggregate deal value of approximately $23.6 million and will immediately bolster ProPhase’s balance sheet and liquidity by eliminating over $20 million in debt, payables, and other contingent liabilities. As part of this transformative deal, the Buyers are providing approximately $2 million in cash payments while more than $10 million in debt will be retired. Additionally, the Buyers are assuming nearly $2 million in capital leases and close to $3 million in current and accrued payables, as well as canceling $300,000 in accrued interest tied to the debt being retired. The private equity firm will further assume approximately $3 million of upcoming capital expenditures.