Fed Governor Adriana Kugler to resign
Avalon GloboCare Corp. (NASDAQ:ALBT), a micro-cap biotech company with a market capitalization of $9.09 million, has entered into a definitive agreement to exit its stake in a joint venture. The stock has shown remarkable momentum, gaining over 155% year-to-date. On Monday, Avalon’s wholly-owned subsidiary, Avalon Laboratory Services, Inc., finalized the sale of its 40% equity interest in Laboratory Services MSO, LLC.
Under the terms of the agreement, Laboratory Services MSO redeemed Avalon Lab’s stake for a total consideration of $1.745 million. The payment structure includes an initial sum of $95,000, followed by monthly installments of $75,000 starting in March 2025, concluding in December 2026. According to InvestingPro data, this transaction is significant given the company’s current financial position, with a weak liquidity ratio of 0.11 and negative EBITDA of $13.25 million in the last twelve months.
Additionally, as part of the agreement, all shares of Avalon’s Series B Convertible Preferred Stock previously issued to SCBC Holdings LLC for the acquisition of the equity interests in Laboratory Services MSO have been surrendered back to Avalon at no extra cost.
The transaction allows Avalon to liquidate its investment and reinforces the company’s strategy to streamline its operations. The news follows Avalon’s formation of Avalon Lab and its initial acquisition of the 40% stake in Laboratory Services MSO. This strategic move aims to optimize Avalon’s asset portfolio and refocus its business priorities.
The details of the Redemption and Abandonment Agreement were disclosed in a regulatory filing with the Securities and Exchange Commission on Thursday. This latest development is part of Avalon’s ongoing efforts to refine its business model and enhance shareholder value.
Investors and stakeholders can find further information regarding the terms of the deal in the Exhibit 10.1 of the 8-K filing, which outlines the complete Redemption Agreement. The company’s shares are listed on The Nasdaq Capital Market under the ticker symbol ALBT.
In other recent news, Avalon GloboCare Corp. has made several noteworthy announcements. The company reported receiving a Notice of Allowance from the China National Intellectual Property Administration for its patent application AVAR1901CN, marking a significant development in chimeric antigen receptor (CAR)-based therapies. This patent, co-developed with Arbele Limited, focuses on a bispecific Anti-CD19xCD22 CAR design, which aims to enhance the effectiveness of CAR cell therapies. Additionally, Avalon GloboCare has entered into a financial agreement with York Sun Investment Holding Limited, involving the sale of Series C Convertible Preferred Stock valued at $7 million. This agreement includes the issuance of up to 7,000 shares at $1,000 per share, with the first transaction already completed for $3.5 million. Furthermore, Avalon GloboCare has executed an exchange agreement with its Chairman, Wenzhao Lu, exchanging 9,000 shares of Series A Preferred Stock for 5,000 shares of newly designated Series D Preferred Stock. This exchange effectively retires the Series A Preferred Stock and introduces the Series D Preferred Stock, which is convertible into common stock at a rate of $2.41 per share. These developments highlight the company’s ongoing efforts in strategic financial management and expansion of its intellectual property portfolio.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.