The Analytical Services division provides pharmaceutical and biotechnology companies with various quality control services including chemistry, chromatography, microbiology, method development and validation, and stability studies.
Upon completion of the sale of its Analytical division, Warnex will receive $400,000 in cash, a cash payment equal to the working capital of the division on the Closing Date, estimated to be approximately $700,000, a 15% passive equity interest in the Purchaser and other valuable consideration.
Warnex will use the proceeds from this transaction to further reduce its long-term debt and for working capital purposes.
Warnex board of directors executive committee chairman Michael Singer said this transaction also allows them to retain substantial upside in the Analytical Services business that they pioneered.
"The sale of our Analytical Services division serves as another important step in the process of improving our balance sheet and positioning the company and its stakeholders for future success," Singer said.
