CpC - Avadim Health Enters into Stalking Horse Sale Agreement Alongside Chapter 11 Filing

- Company Retains Investment Bank SSG to Maximize Value of Sale Transaction

- All Operations to Continue as Normal Throughout the Process

PR Newswire

ASHEVILLE, N.C. , June 1, 2021 /PRNewswire/ -- Avadim Health, Inc. (the Company), a healthcare and wellness provider, today announced it has reached an agreement in principle to sell substantially all of its assets and filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code. These developments represent part of a plan to significantly strengthen the Company and best position it for a long and prosperous future.

Hayfin Capital Management (Hayfin), the Company's existing lender, has entered into a binding stalking horse purchase agreement and committed to provide certain debtor-in-possession financing, subject to Court approval, to allow the Company to meet its obligations during the sale process. The Company also announced it has retained investment bank SSG Capital Advisors, LLC to initiate a comprehensive marketing of its assets to other potential buyers to ensure it receives the highest and best price.

"Our goal is to pursue a transaction that maximizes the value of the Company and ensures we have the necessary resources and flexibility to invest in, and grow the business," said Keith Daniels , the Company's Chief Restructuring Officer. "We will continue to create and market world-class products, including our Theraworx line, that our customers have come to love."

The Chapter 11 filing supports these goals and the Company will continue normal business operations throughout this process.

"We are confident this action provides us with the most efficient and effective way to pursue a transaction while at the same time allowing us to address financial challenges and best position the company going forward," Mr. Daniels said. "To be clear, the action has no impact on our day-to-day business or our ability to continue serving our customers."

The financing that Hayfin has committed to provide in connection with the filing, along with the Company's cash flow from operations, will provide ample liquidity to operate the business and meet ongoing obligations to customers, vendors, and employees through the completion of the sale process.

"We are proud of the important and meaningful work Avadim has done over the years and are committed to ensuring the Company has the right resources in place to continue its mission," said Mr. Daniels. "We are excited about our future."

Avadim is being advised by Carl Marks Advisory Group LLC, the law firm of Pachulski Stang Ziehl & Jones LLP, the law firm of Chapman and Cutler LLP, and SSG Capital Advisors, LLC.

The filing was made in the U.S. Bankruptcy Court for the District of Delaware .

About Avadim Health, Inc.:
Avadim is a healthcare and wellness company that sells topical products to improve immune health, neuromuscular health and skin barrier health. Using its proprietary platform, called the Bionome Engineered Platform, Avadim has developed products that target the institutional care and self-care markets. The company believes there is significant unmet global demand for nonprescription options, such as its products, as an alternative to drugs that are more expensive or potentially addictive and can have long-term detrimental implications for health and society. Avadim's mission, "Discovering New Ways to Care," represents its strong belief that by harnessing the innate power of the skin's ecosystem, it can improve the health of individuals with products that address current societal challenges, including access to care, affordability, drug resistance and addiction. Avadim uses an evidence-based approach to develop, test and market its products. This clinical evidence contributed to the successful registration of several of its products for Medicare and Medicaid reimbursement, and enables the sales teams to serve customers across the full continuum of care, from institutional care to self-care, including in hospitals, long-term care facilities, closed provider pharmacies, physician offices and retail pharmacies.

SOURCE Avadim Health, Inc.