UpHealth Announces Closing of Sale of Innovations Group Incorporated to Belmar Pharma Solutions for $56.0 Million in Gross Proceeds
May 11 2023 - 4:05PM
UpHealth, Inc. (“UpHealth” or the “Company”) (NYSE: UPH), a global
digital health company delivering technology platforms,
infrastructure, and services to modernize care delivery and health
management, today announced it has completed the divestiture of
Innovations Group, Inc., (“IGI”), including its compounding
pharmacy subsidiary, MedQuest Pharmacy, Inc., completing the asset
sale to Belmar Pharma Solutions for $56.0 million in gross
proceeds.
UpHealth Chief Executive Officer Sam Meckey commented, “Today’s
closing delivers significant liquidity to UpHealth’s balance sheet
providing the Company with solid financial footing to execute on
our current initiatives and future growth plans. As we have
previously communicated, 2023 is a recalibration year for UpHealth
and execution of our strategic vision is our top priority. Proceeds
from the sale will be used to invest in building a fully integrated
platform to drive growth and to pay down a portion of our secured
debt. With this major milestone now behind us, we are focused on
execution and pivoting to growth.”
Bourne Partners acted as exclusive financial
advisor, and DLA Piper LLP (US) acted as legal counsel, to UpHealth
on the transaction.
About UpHealth, Inc.
UpHealth is a global digital health company that
delivers digital-first technology, infrastructure, and services to
dramatically improve how healthcare is delivered and managed. The
UpHealth platform creates digitally enabled “care communities” that
improve access and achieve better patient outcomes at lower cost,
through digital health solutions and interoperability tools that
serve patients wherever they are, in their native language.
UpHealth’s clients include health plans, healthcare providers and
community-based organizations. For more information, please
visit https://uphealthinc.com and follow us at UpHealth Inc on
LinkedIn.
About Belmar
Belmar began as a local compounding pharmacy in Denver, Colorado
in 1985, and has since grown into a single source solution for
prescribers, patients, and healthcare facilities all over the
country. Belmar offers compounded medication, education, and
consultation for hormonal, anti-aging, and integrative therapies,
from compounding facilities located throughout the United
States.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of U.S. federal securities laws. Such
forward-looking statements include, but are not limited to,
statements regarding the use of proceeds of the transaction, and
UpHealth’s expectations, hopes, beliefs, intentions, plans,
prospects, or strategies regarding its future business plans. Any
statements contained herein that are not statements of historical
fact may be deemed to be forward‑looking statements. In addition,
any statements that refer to projections, forecasts, or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward‑looking statements. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking. The
forward-looking statements contained in this press release are
based on certain assumptions and analyses made by the management of
UpHealth in light of their respective experience and perception of
historical trends, current conditions, and expected future
developments and their potential effects on UpHealth as well as
other factors they believe are appropriate in the circumstances.
There can be no assurance that future developments affecting
UpHealth will be those anticipated. These forward-looking
statements involve a number of risks, uncertainties (some of which
are beyond the control of the parties), or other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking
statements, including the ability of UpHealth to service or
otherwise pay its debt obligations, the mix of services utilized by
UpHealth’s customers and such customers’ needs for these services,
market acceptance of new service offerings, the ability of UpHealth
to expand what it does for existing customers as well as to add new
customers, that UpHealth will have sufficient capital to operate as
anticipated and the impact that the novel coronavirus and the
illness, COVID-19, that it causes, as well as government responses
to deal with the spread of this illness and the reopening of
economies that have been closed as part of these responses, may
have on UpHealth’s operations, the demand for UpHealth’s products,
global supply chains and economic activity in general. Should one
or more of these risks or uncertainties materialize or should any
of the assumptions being made prove incorrect, actual results may
vary in material respects from those projected in these
forward-looking statements. We undertake no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as may be required
under applicable securities laws.
UpHealth Investor Relations
ContactShannon Devine (MZ North America)Managing
Director203-741-8811UPH@mzgroup.us
Source: UpHealth, Inc.
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