Biolife Solutions, Inc. (NASDAQ: BLFS) has announced the successful divestiture of its wholly owned subsidiary Global Cooling, Inc. (GCI) or Stirling. This move is expected to immediately eliminate several million dollars of quarterly cash burn and remove product warranty liabilities, which totaled $7.5 million as of December 31, 2023.
The transaction, structured as a stock sale, required $7 million in cash to remain on the balance sheet of GCI and the repayment of $2.6 million in GCI long-term debt.
Roderick de Greef, Chairman and CEO of Biolife, noted that the divestiture is anticipated to result in higher growth rates in total revenue and adjusted EBITDA, as well as gross margin expansion.
The company intends to file a current report on Form 8-K with the U.S. Securities and Exchange Commission containing the definitive agreement along with certain pro forma financial information.
This announcement indicates a strategic shift for Biolife Solutions, as it seeks to streamline its operations and focus on its core business in the cell and gene therapy and broader biopharma markets.
Investors and stakeholders will be keen to see the impact of this divestiture on Biolife's financial performance in the coming quarters, particularly in terms of revenue growth, adjusted EBITDA, and gross margin. As a result of these announcements, the company's shares have moved 4.4% on the market, and are now trading at a price of $15.8. If you want to know more, read the company's complete 8-K report here.
