01:00 PM EDT, 04/02/2024 (MT Newswires) -- Evome Medical Technologies Inc. ( LNDZF ) has reached an agreement with EB Sports Corp., parent company of Riddell Sports Group, in football helmet technology and innovation, to sell Simbex LLC, Evome's R&D business unit, for $4.83 million in cash.

According to a statement, the gross proceeds will reduce senior debt of Simbex by US$824,441 upon closing and Evome's debt associated with its acquisition of Biodex by US$2.1 million. The remainder of the funds will be used for transaction costs and debt reduction to subordinated and unsecured creditors.

As a result of the sale, Evome expects a cut in annual revenue of ~US$6 million. Net income is expected to decrease immaterially.

Evome plans to continue its innovation with the upcoming launch of the SpaceTek Knee in late 2024. This isokinetic device, co-developed with NASA, marks Evome's commitment to advancing medical technology and improving patient outcomes while improving margins and increasing sales, the company said.

Evome is up 6.8% too $0.24.

Price: 0.24, Change: +0.02, Percent Change: +6.82