HOUSTON - Guardion Health Sciences, Inc. (NASDAQ:GHSI), a clinical nutrition company, has finalized the sale of its Viactiv business to Doctor’s Best Inc. for a total gross cash consideration of $17.2 million. The deal, which was closed today, resulted in Guardion receiving net cash proceeds of $16.25 million at closing. An additional $225,000 is being held in escrow to be released according to the transaction's terms.
The transaction was previously approved by Guardion’s stockholders at a Special Meeting held on May 23, 2024. Following the approval, the company adjourned the meeting to solicit further proxies from its stockholders to vote in favor of adopting a Plan of Liquidation and Dissolution. At the reconvened meeting today, the stockholders granted majority approval for the Plan of Liquidation and Dissolution.
With the divestment of Viactiv, Guardion is left with minimal operations. The Board of Directors has decided that voluntary dissolution and liquidation of the company is in the best interest of the stockholders. This decision, however, is subject to change if the Board identifies another transaction that may better serve the stockholders' interests.
The decision to liquidate follows a comprehensive review of strategic alternatives by the company’s Board of Directors over the past year. Guardion’s future actions, including the potential liquidation, are subject to various risks and uncertainties, which are detailed in the company’s filings with the U.S. Securities and Exchange Commission.
This news is based on a press release statement and reflects the latest strategic developments concerning Guardion Health Sciences, Inc.
InvestingPro Insights
As Guardion Health Sciences, Inc. (NASDAQ:GHSI) navigates through significant strategic changes with the sale of its Viactiv business and the approval of a Plan of Liquidation and Dissolution by its stockholders, investors are closely watching the company's financial health and market performance. According to recent data from InvestingPro, Guardion holds a market capitalization of $12.33 million, reflecting the scale of the business in the context of the broader market.
An InvestingPro Tip indicates that Guardion holds more cash than debt on its balance sheet, which could be a reassuring sign for investors as the company proceeds with its plans for liquidation. This financial stability is further underscored by the fact that Guardion's liquid assets exceed its short-term obligations, providing a cushion during this transitional phase.
Still, the company's trajectory isn't without its challenges. Guardion is quickly burning through cash, and analysts do not anticipate the company will be profitable this year, with net income expected to drop. These factors are crucial considerations for shareholders as they weigh the potential outcomes of the liquidation process.
In terms of market performance, Guardion's price has seen a strong return over the last month, with a 17.09% increase, and an even more significant uptick over the last six months, recording a 55.99% rise. This recent positive momentum could influence investor sentiment in the short term, although the company has not been profitable over the last twelve months and has experienced a poor price performance over the last decade.
For investors seeking more detailed analysis and additional insights, there are over 10 additional InvestingPro Tips available, which can be accessed through the dedicated InvestingPro platform for Guardion Health Sciences, Inc. at https://www.investing.com/pro/GHSI. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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