Aytu Bioscience acquires Innnovus Pharma

Aytu BioScience, Inc.a specialty pharmaceutical company focused on commercializing novel products that address significant patient needs and Innovus Pharmaceuticals, Inc., a specialty pharmaceutical company commercializing, licensing and developing safe and effective consumer health products,announced that the companies have closed the acquisition of Innovus by Aytu. Through this transaction Aytu has retired all outstanding common stock of Innovus and certain Innovus warrants for consideration consisting of approximately 3.8 million shares of Aytu common stock and approximately 2 million shares of preferred stock (convertible on a 1:1 basis into common stock) and the forgiveness of $1.35 million of debt previously owed to Aytu. On a consolidated basis, Aytu will also assume $3.2 million in unsecured debt of Innovus. The initial $2 million CVR payment is expected to be made, pending final independent auditor procedures, based on Innovus generating more than $24 million in revenue for the year-ended December 31, 2019. Through this combined entity, Aytu expands into the $40 billion consumer healthcare market with a portfolio of over thirty-five consumer products competing in large therapeutic categories including diabetes, men's health, sexual wellness and respiratory health. This expanded product line broadens Aytu's portfolio beyond its $20 million prescription therapeutic portfolio to enable wider revenue distribution and consumer reach, reduced seasonality associated with Aytu's seasonal antitussive product line, and higher revenue from an expanded base of proprietary products.