MedAvail Holdings, Inc.: restructuring charge — MedAvail sells SpotRx pharmacy assets to CVS for up to $4.4M; expects ~$2.5M debt post-close

MedAvail Holdings, Inc.

Purchase price up to $4.4M; deal expected to close in Q1 2023.
Sells assets from 8 SpotRx pharmacies in AZ, CA, MI, FL.
Estimated year-end 2022 cash/investments $10-11M; remaining debt ~$2.5M after closing.
One-time restructuring costs in H1 2023 ~$6.5M, excluding loan paydown.
Company evaluating financing options, including with existing shareholders.

item 1.01 item 2.01 item 2.02 item 2.05 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Earnings Releases SEC 8-K Item 2.02 confidence 0.85

MedAvail Holdings, Inc. reported preliminary financial results for 2022.

Period: 2022
Result: preliminary results

Exact text from the filing

On January 26, 2022, the Company announced certain preliminary estimates of selected financial results for 2022.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

MedAvail Holdings, Inc. entered into Asset Purchase and Sale Agreement with German Dobson CVS, L.L.C., Garfield Beach CVS, L.L.C., Longs Drug Stores California, L.L.C., Woodward Detroit CVS, L.L.C. and Holiday CVS, L.L.C. (collectively, "CVS") valued at up to $4.4 million (effective 2023-01-22).

Action: entry
Agreement: asset purchase
Counterparty: German Dobson CVS, L.L.C., Garfield Beach CVS, L.L.C., Longs Drug Stores California, L.L.C., Woodward Detroit CVS, L.L.C. and Holiday CVS, L.L.C. (collectively, "CVS")
Value: up to $4.4 million
Effective: 2023-01-22

Exact text from the filing

On January 22, 2023, MedAvail Pharmacy, Inc. (the “Company”) entered into the Asset Purchase and Sale Agreement dated January 20, 2023 (the “Asset Purchase Agreement”) with German Dobson CVS, L.L.C., Garfield Beach CVS, L.L.C., Longs Drug Stores California, L.L.C., Woodward Detroit CVS, L.L.C. and Holiday CVS, L.L.C. (collectively, “CVS”), pursuant to which the Company agreed to sell certain of its assets, including pharmacy records, inventory and other assets, in the SpotRx pharmacies located in Tucson and Phoenix, Arizona; Buena Park, Laguna Hills and San Fernando, California; Southfield, Michigan; and in Orlando and Tampa, Florida, for an aggregate purchase price of up to $4.4 million that is payable upon closing (the “CVS Transaction”).

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

MedAvail Holdings, Inc. announced a restructuring with charges of approximately $6.5 million affecting pharmacy services business.

Type: restructuring
Charge: approximately $6.5 million
Affected area: pharmacy services business

Exact text from the filing

The Company 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.

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Source: SEC EDGAR

accession 0001402479-23-000005

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