Bullish indicating open at $55-$60, IPO prices at $37
BOHEMIA, N.Y. - Scientific Industries Inc. (OTCQB:SCND), whose stock has declined over 74% in the past year according to InvestingPro data, announced Thursday it has sold its Genie Division to Troemner, LLC, a manufacturing sister company of OHAUS Corporation, for $9.6 million in cash less working capital adjustments, with potential for an additional $1.5 million earnout over twelve months. The company’s current market capitalization stands at $5.2 million.
The transaction includes transition services and supply agreements under which Scientific Industries will provide products and support for up to a year.
The sale represents a strategic shift for the company, which is refocusing on its two remaining divisions: Torbal, which develops pharmacy automation systems, and Scientific Bioprocessing, which creates tools for biomanufacturing.
"Today, we are transforming into a deep-tech, AI-enabling company focused on two of the pharmacy and pharmaceutical industries’ largest opportunities: pharmacy automation and biomanufacturing," said Helena Santos, CEO of Scientific Industries, in the press release.
The company’s Torbal division has deployed nearly 2,000 units of its VIVID automated pill counting platform since its 2020 launch. Scientific Industries is developing a machine learning pill library expected to launch in Q1 2026.
Meanwhile, its Scientific Bioprocessing division is developing the DOTS platform, designed to convert biological signals into machine-readable data for biomanufacturing applications.
On April 18, Scientific Industries secured $1.5 million in financing from existing investors through the sale of common stock and warrants. The company plans to reinvest proceeds from the Genie division sale into scaling its remaining platforms.
BroadOak Capital Partners served as financial advisor to Scientific Industries on the divestiture. According to InvestingPro data, analysts expect sales growth of 4.37% this fiscal year, with the company projected to return to profitability. InvestingPro subscribers can access 15+ additional exclusive insights and a comprehensive analysis of Scientific Industries’ financial health and future prospects through the Pro Research Report.
In other recent news, Scientific Industries Inc. reported its Q1 2025 earnings, highlighting financial challenges at the start of the fiscal year. The company experienced a decline in revenue within its bioprocessing segment, although it managed to slightly improve its net loss due to reduced operating expenses. In a positive development, Scientific Industries successfully secured $1.5 million in new financing, which could support its ongoing operations and future initiatives. The company also made progress in product innovation, an area that may contribute to its long-term growth. These updates come amidst broader economic uncertainties, which have influenced market sentiment.
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