Virland A. Johnson, Chief Financial Officer of JanOne Inc. acquired ARCA Canada Inc., ARCA Recycling, Inc. and Customer Connexx LLC from JanOne Inc. for $25 million.
March 14, 2023
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Virland A. Johnson, Chief Financial Officer of JanOne Inc. acquired ARCA Canada Inc., ARCA Recycling, Inc. and Customer Connexx LLC from JanOne Inc. (NasdaqCM:JAN) for $25 million on March 9, 2023. The consideration consists of $1000 for each of the subsidiaries at the closing, a revolving line of credit from the buyer in the aggregate amount of $1 million and $24 million in aggregate monthly payments which are subject to potential increase due to the future performance. Each monthly payment is to be the greater of (a) $140,000 (or $100,000 for each January and February during the 15-year payment period) or (b) a monthly percentage-based payment, which is an amount calculated as follows: (i) 5% of the Subsidiaries' aggregate gross revenues up to $2,000,000 for the relevant month, plus (ii) 4% of the Subsidiaries' aggregate gross revenues between $2,000,000 and $3,000,000 for the relevant month, plus (iii) 3% of the Subsidiaries aggregate gross revenues over $3,000,000 for the relevant month. The buyer will receive credit toward the payment of the first monthly payment (March of 2023) for any payments, distributions, or cash dividends paid by any of the subsidiaries to the Seller on or after March 1, 2023. Board of Directors of JanOne unanimously approved the transaction. Randolf Katz of Clark Hill acted as legal advisor to JanOne Inc. James J. Gatziolis acted as legal advisor to Virland Johnson.
Virland A. Johnson, Chief Financial Officer of JanOne Inc. completed the acquisition of ARCA Canada Inc., ARCA Recycling, Inc. and Customer Connexx LLC from JanOne Inc. (NasdaqCM:JAN) on March 9, 2023.
JanOne Inc. is a clinical-stage biopharmaceutical company. The Company is focused on identifying, acquiring, licensing, developing, partnering, and commercializing novel, no-opioid, and non-addictive therapies to address the large, unmet medical need for the treatment of pain and addiction. Its drug candidate, JAN101, is a patented oral, sustained-release pharmaceutical composition of sodium nitrite that targets poor blood flow to the extremities, such as those with vascular complications of diabetes or Peripheral Artery Disease (PAD) and treats pain. The Companyâs drug candidate is a treatment for Peripheral Artery Disease, a condition that can cause severe pain and affects over 8.5 million people in the United States. The Company operates through the Biotechnology segment, which is focused on finding treatments for conditions that cause severe pain and bringing to market drugs with non-addictive pain-relieving properties.
Virland A. Johnson, Chief Financial Officer of JanOne Inc. acquired ARCA Canada Inc., ARCA Recycling, Inc. and Customer Connexx LLC from JanOne Inc. for $25 million.
JANONE INC. 
