MedAvail announces Sale of Pharmacy Assets to CVS Pharmacy
January 26 2023 - 8:00AM
MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”), an innovative
technology-enabled pharmacy company, today announced it
has entered into a definitive agreement with CVS Pharmacy,
Inc., on behalf of itself and its subsidiaries and affiliates
(“CVS”), for the sale of certain assets of MedAvail’s SpotRx
pharmacies (the “CVS Transaction”).
In connection with the CVS Transaction, MedAvail has agreed to
sell to CVS certain assets related to its SpotRx pharmacies located
in Tucson and Phoenix, Arizona; Buena Park, Laguna Hills and San
Fernando, California; Southfield, Michigan; and in Orlando and
Tampa, Florida. Upon completion of the CVS Transaction, the
pharmacy records and inventory purchased by CVS will be transferred
from the SpotRx pharmacies to nearby CVS Pharmacy locations.
The CVS transaction allows for the continuity of care for SpotRx
pharmacy customers. To help ensure continuity of care and a
seamless transition, CVS plans to interview employees currently
working at SpotRx pharmacies who are interested in joining the CVS
team.
A portion of the proceeds from the CVS Transaction will be used
to paydown the company’s existing loan facility. The company
previously prepaid a portion of the loan at the end of 2022, and
after the closing of the transaction, the company anticipates its
remaining debt balance to be approximately $2.5 million. The
remaining proceeds will be used for ongoing operation of the
company.
The company currently estimates that it will end 2022, prior to
the CVS transaction, with between $10 million to $11 million of
cash and investments. The company also currently estimates that it
will incur one-time costs in the first half of 2023 related to the
previously announced restructuring to be approximately $6.5
million, excluding the paydown of its existing loan facility.
MedAvail continues to closely evaluate various financings options,
including with existing shareholders.
“We are pleased with the non-dilutive capital that we are able
to generate with this agreement to extend our cash runway and
reduce our debt. This divestiture is a critical step toward our
path to profitability as we redeploy this capital toward the
expansion of our pharmacy technology business,” said Mark Doerr,
Chief Executive Officer of MedAvail. “I want to express my
gratitude to our team members and to the CVS team for their strong
commitment to our patients and focus on the continuity of care for
SpotRx customers.”
The closing of the CVS transaction is subject to standard
closing conditions and is expected to complete in the first quarter
of 2023. Triavo Health acted as exclusive financial advisor for the
transaction.
About MedAvail
MedAvail Holdings, Inc. (NASDAQ: MDVL) is a technology-enabled
pharmacy company, providing turnkey in-clinic pharmacy services
through its proprietary robotic dispensing platform, the MedAvail
MedCenter, and home delivery operations, to Medicare clinics.
MedAvail helps patients to optimize drug adherence, resulting in
better health outcomes. Learn more at www.medavail.com.
Forward Looking Statements
Certain statements included in this press
release that are not historical facts are forward-looking
statements for purposes of the safe harbor provisions under the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as "believe,"
"may," "will," "estimate," "continue," "anticipate," "intend,"
"expect," "should," "would," "plan," "predict," "potential,"
"seem," "seek," "future," "outlook," "project," and similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements regarding MedAvail's business strategy and market
opportunity; preliminary estimates of selected financial results,
potential future revenue and cost savings projections and
expectations for growth and profitability; restructuring and
reorganization targets, customer demand and expansion plans;
margin, utilization and cost reduction improvements; the closing
of, and expected proceeds from, the CVS Transaction, customer
partnerships and potential financing transactions. These statements
are based on various assumptions, whether or not identified in this
press release, and on the current expectations of MedAvail's
management and are not predictions of actual performance.
Forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements, including but not limited to
our ability to successfully achieve the benefits of a pharmacy
technology only business and the efficiencies related to a
restructuring and reorganization, and risks relating to our ability
to successfully consummate potential strategic, financing and
restructuring transactions, as well as other risks discussed under
the heading "Risk Factors" in MedAvail’s Annual Report on Form 10-K
for the year ended December 31, 2021, filed with the Securities and
Exchange Commission (“SEC”) on March 29, 2022, MedAvail’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2022, filed
with the SEC on November 10, 2022, and other filings MedAvail makes
with the SEC in the future. Additional information is also set
forth in MedAvail’s Annual Report on Form 10-K for the year ended
December 31, 2021, MedAvail’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2022, and other filings MedAvail makes
with the SEC in the future. Any preliminary estimates regarding
selected 2022 financial results are further subject to the
completion of management’s and the audit committee’s final reviews
and MedAvail’s other financial closing procedures and are therefore
subject to change. You should not place undue reliance on such
preliminary information and estimates because they may prove to be
materially inaccurate. While we believe that such preliminary
information and estimates are based on reasonable assumptions,
actual results may vary, and such variations may be material. If
any of these risks materialize or our assumptions prove incorrect,
actual results could differ materially from the results implied by
these forward-looking statements. These forward-looking statements
speak only as of the date hereof and MedAvail specifically
disclaims any obligation to update these forward-looking
statements.
Contacts:Investor
RelationsJi-Yon YiGilmartin Groupir@medavail.com
SOURCE MedAvail Holdings, Inc.
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