PhotoMedex, Inc. (NASDAQ:PHMD) Acquired By ICTV Brands (CSE:ITY) for $9.5M, Stocks Advance on News

Marketing and branding health company, ICTV Brands (CSE:ITY) announces an agreement to acquire the consumer products business of PhotoMedex, Inc. (NASDAQ:PHMD) for $9.5 million.

A Wayne direct response marketing and branding company specializing in the health, wellness and beauty sector, has signed a definitive agreement to acquire the consumer products business of PhotoMedex Inc. — led by its line of no!no! hair removal products — for $9.5 million.

ICTV Brands (CSE:ITY) is also acquiring Horsham-based PhotoMedex’s Kyrobak and Cleartouch brands. Kyrobak is an electronic device used to relieve back pain. Cleartouch is a phototherapy treatment for nail fungus. ICTV’s flagship product is the DermaWand, a device designed to reduce visible signs of aging.

Under the terms of the agreement, ICTV will pay PhotoMedex (NASDAQ: PHMD) $3 million when the deal closes, another $2 million 90 days after the closing, and a $4.5 million capped royalty based on future net sales.

The proposed asset purchase will include the respective product trademarks, patents, and other intellectual property and PhotoMedex’s Hong Kong and Brazilian subsidiaries. ICTV will also receive a minimum of $6 million of inventory.

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The board of directors of both ICTV and PhotoMedex have approved this agreement. In addition, ICTV’s board has approved a financing of up to $7 million in a private placement — $3 million of which has been raised and placed in escrow — led by a group of existing shareholders.

The closing of the acquisition and the financing are subject to customary closing conditions.

Richard Ransom, president of ICTV Brands, believes the acquisition of the no!no! brand will be “transformative” for the company. “We believe this transaction will firmly establish ICTV Brands as a worldwide leader in the health and beauty device industry,” Ransom said.

 

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PhotoMedex, Inc. (NASDAQ:PHMD) shares have moved +22.61% on the news thus far today and have traded in the range of $1.23 – 1.60 during the current session. In order to take a look at where the stock might be headed longer term, investors often look to research firms that cover the stock. Sell-side research firms currently have a consensus one-year price target of $16.85 on the stock.  This is according to brokerage analysts polled by Thomson Reuters First Call.  The sell-side analysts are projecting earnings per share of $0.00 for the next fiscal quarter.  For the current year, analysts are predicting earnings of $-0.73 per share according to First Call.

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In looking at where the stock is trading on a technical level, the stock is trading +18.54% away from its 50-day moving average of $1.19.  Based on the most recent available data, the equity is -66.82% off of its 52-week high of $4.25 and +56.67% away from its 52-week low which is $0.90.

Today, the stock opened at $1.58 and the last bid at the time of writing stood at $1.41.  During the session thus far, the equity dipped down to $1.23 and touched $1.60 as the high point.  PhotoMedex, Inc. (NASDAQ:PHMD) has a market cap of $5.86M and has seen an average daily volume of 45065 over the past three months.

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