TRxADE HEALTH Rises Over 140% - What's Going On?

TRxADE HEALTH, Inc. MEDS shares are skyrocketing on Tuesday.

On Friday, TRxADE HEALTH announced the sale of assets of subsidiary Trxade, Inc. to Micro Merchant Systems (MMS) for $22.5 million, subject to customary adjustments for cash, indebtedness, working capital and transaction expenses, per an exchange filing.

Trxade operates a web-based market platform designed to enable trading among healthcare buyers and sellers of pharmaceuticals, accessories and services. 

Subject to the terms and conditions of the Purchase Agreement, if, during the period beginning on the closing date and ending on the four-month anniversary of the closing date MMS receives $1.6 million or greater in certain collections from third parties resulting from any products or services sold, or provided, by the business assets and operations acquired, Trxade will be due an additional $7.5 million payment from MMS.

On the same day, a legal firm named Dykema released a statement mentioning that a team of lawyers, Peter Waltz, Jon Meulemans, paralegal Jill Knutson, and Kate Bechen, has helped TRxADE close on the sale of all of the assets of one of its primary operating subsidiaries. The deal was completed in just three weeks, the legal firm said.

For this transaction, TRxADE entered into an asset purchase agreement with MMS, a venture capital-backed company represented by Kirkland & Ellis.

Following the asset sale, TRxADE, via its wholly owned subsidiary, Integra Pharma Solutions, LLC, will retain ownership of assets related to pharmaceutical wholesaling. 

The company will continue selling brand, generic, and non-drug products, while maintaining other unrelated assets previously owned by TRxADE, the legal firm said in the statement.

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Price Action: MEDS shares are trading higher by 142.42% to $10.29 on the last check Tuesday.