- Avalon GloboCare ( NASDAQ: AVCO ) to acquire a 60% interest in Laboratory Services MSO, LLC, a leading reference laboratory with 2021 unaudited revenue in excess of $25M, net income in excess of $10M and over 600,000 tests completed since inception.
- With the move, Avalon will be changing its ticker symbol from "AVCO" to "ALBT" and will begin trading under the new symbol on the Nasdaq Capital market on November 10, 2022.
- Total consideration for the acquisition will be $31M, consisting of $15M in cash; $15M in shares of the company’s Series B preferred stock and $1M payable on the first anniversary of the closing date.
- The preferred shares will be restricted from conversion for 12 months and thereafter will have leak-out provisions restricting conversion to only 10% of total holdings.
- The cash portion to be financed with a private placement of $15M of Avalon preferred stock, convertible at a floor of $1.00/share, with leak-out provisions, no warrants and a 9-month lock up .
- The transaction is expected to close in 30 days, subject to a 90 day right of extension by the Company.
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Shares of AVCO are up 3.29% premarket.
For further details see:
Avalon GloboCare to acquire a 60% interest in Laboratory Services MSO, LLC