JanOne, Inc. (NASDAQ: JAN) is a biopharmaceutical-focused company, which specializes in developing non-addicting pain killers as an alternative to opioids. Shares of the biopharma company are rallying 26% through early trading on Wednesday, March 22, 2023. Over the past three months, JanOne has seen average daily volume of 140,570 shares. However, volume of 13.76 million shares or dollar volume of around $19.54 million, has already exchanged hands through early trading.
Shares of JanOne are rallying after the company announced it has entered into a stock purchase agreement with VM7, a Delaware corporation. Under the terms of the agreement, VM7 will acquire JanOne’s recycling legacy businesses: ARCA Recycling, Inc., Customer Connexx, LLC, and ARCA Canada, Inc. Virland Johnson, who served as ARCA Recycling’s CFO and COO for many years, is also the principal of VM7.
ARCA Recycling is a recycler of household appliances, which provides turnkey services for utilities and other energy efficiency program sponsors. Customer Connexx is a Las Vegas-based call center business and ARCA Canada is the Canadian portion of its recycling business.
Tony Isaac, JanOne’s CEO, stated: “I wish ARCA Recycling’s new owner continued success in their business. This sale will allow JanOne to focus wholly on therapeutics where we see enormous potential for growth benefiting our shareholders. Our leadership team looks forward to continuing to bring non-addictive pain-relieving alternatives to market in an effort to reduce opioid abuse.”
The sale of its legacy business will help reduce liabilities by $17.6 million and provide at least $24 million in future payment milestones. The JanOne Board of Directors unanimously approved the sale, as the company repositions its primary focus to its biopharma business.
JanOne currently has two key pain management products that are currently under development: JAN123 and JAN101. JAN123 is being developed as a treatment for Complex Regional Pain Syndrome (CPRS), which can cause severe and chronic pain to the arms or legs. JAN101 is focused as a potential treatment for PAD, a vascular disease that impacts over 8.5 million people in the United States.
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