Avalon GloboCare Corp (NASDAQ: AVCO) has agreed to acquire a 60% interest in Laboratory Services MSO LLC, a premier reference laboratory.

What Happened: Total consideration for the acquisition will be $31 million, including $15 million in cash, $15 million in series B preferred shares, and $1 million payable after one year of the closing of the transaction

The company paid a $5 million refundable cash advance with the signing of the definitive agreement.  

Additionally, Laboratory Services will have an earnout tied to 2022 and 2023 positive cash flow targets of up to $10 million, payable in cash and shares.

At the closing, Sarah Cox, the Co-founder & CEO of Laboratory Services, will become the Chief Operating Officer of the Company and will join the Company’s Board of Directors.

In connection with the transaction and to reflect the expanded focus on lab testing and services, Avalon will change its ticker symbol from “AVCO” to “ALBT.” Trading will start on Thursday, November 10.

Why It Matters: Laboratory Services provides a broad portfolio of diagnostic tests.

Laboratory Services has completed over 600,000 tests since inception, operates with 2021 unaudited annual revenue of over $25 million, and has two locations in California.

David Jin, President & CEO of Avalon, commented, “This is a transformative acquisition for Avalon as it brings significant revenue and positive cash flow and is expected to be highly accretive to earnings while adding strong clinical synergies to the existing Avalon portfolio. 

Price Action: AVCO shares are up 3.47% at $0.58 premarket on the last check Tuesday.

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