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DALLAS - SWK Holdings Corporation (NASDAQ:SWKH), a specialty finance company focusing on the life science sector with a market capitalization of $205 million, has completed the sale of its royalty assets to SCOF SPV I, LP, a subsidiary of Soleus Capital Management. The deal, which closed today, resulted in total cash proceeds of approximately $34.0 million. According to InvestingPro data, the company maintains strong liquidity with liquid assets exceeding short-term obligations.
In line with the transaction's completion, SWK's Board of Directors has declared a special cash dividend of $4.00 per share. This dividend will be distributed to shareholders recorded as of April 24, 2025, with the payment date set for May 8, 2025.
Jody Staggs, the Chief Executive Officer of SWK Holdings, stated, "This transaction represents an attractive monetization of the majority of our royalty assets at valuation approximating the GAAP carrying value. In this uncertain market we are pleased to achieve this value for our shareholders." Staggs also highlighted the company's commitment to delivering shareholder value and expressed optimism about SWK's future, citing its approximately $220 million performing life science loan portfolio that continues to generate attractive cash yields. The company's financial strength is evident in its impressive 92% gross profit margin and healthy current ratio of 26.07, as reported by InvestingPro.
SWK Holdings specializes in non-dilutive financing solutions for small- to mid-sized healthcare companies that are commercial-stage. The company's financing structures are designed to provide flexible solutions at an attractive cost of capital to foster long-term value creation for all stakeholders. SWK's financial solutions include structured debt, royalty monetization, synthetic royalty transactions, and asset purchases, typically ranging from $5.0 million to $25.0 million.
The company also owns MOD3 Pharma, a clinical development and manufacturing organization that offers development services to pharmaceutical partners. With a price-to-book ratio of 0.7 and proven profitability over the last twelve months, SWKH shows promising fundamentals. For deeper insights into SWK Holdings' financial health and growth potential, investors can access comprehensive analysis through InvestingPro's detailed research reports, available for over 1,400 US stocks.
The press release included a standard disclaimer about forward-looking statements, cautioning that such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
This news is based on a press release statement from SWK Holdings Corporation.
In other recent news, SWK Holdings Corp reported strong financial results for the fourth quarter of 2024, with earnings per share reaching $0.7 and net income totaling $5.9 million. The company's Mod3 Pharma division saw a significant increase in revenue, tripling to $3.6 million compared to the previous year. SWK Holdings deployed $44 million into yielding finance receivables, contributing to a finance segment net income of $8.2 million. The company's effective yield on its portfolio was 15.5%, indicating strong returns on investments. Additionally, SWK Holdings is considering a one-time special dividend, which could further enhance shareholder value. Analysts from various firms have noted these developments, with some considering potential impacts on future performance. The company also announced plans to renew its share buyback program in 2025, taking advantage of the current 20% discount to book value. These recent developments highlight SWK Holdings' strategic focus on life sciences financing and its financial health entering 2025.
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