Oculus Innovative Sciences (OCLS) Sells Latin America Business for Over $19.5M
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Oculus Innovative Sciences, Inc. (NASDAQ: OCLS), a specialty pharmaceutical company that develops and markets solutions for the treatment of dermatological conditions and advanced tissue care, today announced the sale of the company’s Latin American-related assets to Invekra S.A.P.I. de C.V. of Mexico for $19.5 million in cash. Additionally, Invekra will pay Oculus a three percent payment on all Latin American revenues outside of Mexico, with a minimum payment of $250,000 per year for the next ten years, to be paid quarterly in Mexican pesos.
According to the agreement, Oculus will sell all its Latin American assets related to the Microdacyn®-based products sold into Latin America and the Caribbean (except for dermatology products in Brazil). In exchange, Invekra will pay Oculus $19.5 million, with $18 million already paid as of October 28, 2016, and $1.5 million to be placed in escrow until certain equipment is delivered to Invekra, which is expected in February 2017. As part of the agreement, Oculus will maintain its current manufacturing facility in Guadalajara, Mexico for production of its Oculus-branded Microdacyn-based products for all countries outside of the United States and Latin America. Meanwhile, Oculus will provide assistance and equipment in the establishment of Invekra’s own Microdacyn manufacturing facility in Mexico City’s metropolitan area.
Jim Schutz, CEO of Oculus, said, “We genuinely see this as a strategic opportunity to focus on our growing dermatological business. From Invekra’s perspective, they are acquiring guaranteed exclusivity in the Latin American market for our Microdacyn family of products, thus controlling their own destiny and reaping the full rewards from their marketing spend. From Oculus’ perspective, we are selling a slower growing, lower-margin segment of our business in exchange for a significant influx of immediate cash, allowing us to further advance our higher-margin, fast growing U.S. dermatology business. In addition, the proceeds from this deal provide us with more than sufficient capital for us to reach commercial breakeven and achieve operating profitability.”
Business Update Conference CallOculus’ management will hold a business update conference call on Tuesday, November 1, 2016 beginning at 9:00 am. EDT to discuss the Invekra agreement. Individuals interested in participating in the conference call may do so by dialing (877) 303-7607 for domestic callers or (973) 638-3203 for international callers.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Skyline Medical (SKLN) Appoints New CEO, Board Member
- Envision Healthcare (EVHC) and AMSURG (AMSG) Complete Merger
- Teleflex (TFX) to Acquire Vascular Solutions (VASC) in $1B Deal
Create E-mail Alert Related CategoriesCorporate News, Hot Corp. News, Mergers and Acquisitions, Momentum Movers
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!