Benzinga | Aug 4, 2021 05:19PM EDT

Adamis Pharma Reports Deal To Sell Portion Of US Compounding Business, No Terms Disclosed

Adamis Pharmaceuticals Corporation (NASDAQ:ADMP) today announced that it has entered into a definitive agreement to sell a significant portion of the assets of its subsidiary, US Compounding Inc. (USC), related to USC's human compounding pharmaceutical business and customers, in exchange for total gross consideration estimated to be up to $15 million before transaction fees and expenses. The consideration will be paid by the buyer to Adamis in monthly installments over the course of approximately 12 months based on a multiple of gross revenue generated by the assets during the measurement period.

The transaction aligns with Adamis' stated goal of focusing its efforts on the development of its prescription pharmaceutical pipeline. Adamis expects to use the proceeds from the sale for general corporate purposes and to fund ongoing development of its pipeline.

Further details related to the transaction and related matters will be contained in a report on Form 8-K to be filed by the Company within four business days of the effective date of the agreement.