Replies to post #718 on Adamis Pharmaceuticals Corp (ADMP)

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Adamis Pharmaceuticals Announces Agreement to Acquire US Compounding

SAN DIEGO, March 29, 2016 (GLOBE NEWSWIRE) -- Adamis Pharmaceuticals Corporation (NASDAQ:ADMP) (“Company” or “Adamis”) announced today that it has entered into a definitive merger agreement (the “Agreement”) to acquire US Compounding, Inc. (“USC”), a privately held company registered as a drug compounding outsourcing facility under Section 503B of the U.S. Food, Drug & Cosmetic Act (“FD&C Act”), that provides prescription medications to patients, physician clinics, hospitals and surgery centers throughout most of the United States. Under the terms of the Agreement, upon the closing of the transactions contemplated by the Agreement USC will become a wholly-owned subsidiary of Adamis, all of the outstanding shares of USC will be converted into the right to receive approximately 1.62 million shares of Adamis common stock, and Adamis will assume certain secured debt obligations. The transaction is expected to close in the second quarter of 2016, subject to the satisfaction of customary closing conditions.

Dr. Dennis J. Carlo, President and CEO of Adamis, stated, “USC will be a compelling addition for Adamis. We believe the combination of revenues of $20 million or greater in each of the last two years, a large sales and marketing team and robust manufacturing capabilities, will be both synergistic with and accretive to Adamis’ overall value. We expect the new division will generate at least $5 million in operating income over the first 12 months and achieve an annualized run rate of $50 million per year within 24 months after closing.”