ProPhase Labs Enters Reverse Merger LOI with ABL Valued at $30 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
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Source: Globenewswire
- Transaction Intent: ProPhase Labs has signed a non-binding Letter of Intent with ABL to pursue a reverse merger, aiming to make ABL the majority owner of the combined entity, which is expected to deliver near-term value and long-term growth potential for existing shareholders.
- Cash Dividend Plan: ProPhase may declare a special cash dividend of up to $10 million for shareholders, designed to provide a differentiated value pathway independent of the future performance of the merged company, thereby enhancing shareholder confidence.
- Asset Carve-Out: All Crown Medical Collections receivables are expected to be carved out exclusively for current ProPhase shareholders, with anticipated net collections of approximately $50 million, further increasing potential returns for shareholders.
- Strategic Collaboration: Post-merger, ABL shareholders are expected to own about 76% of the combined company, and the integration of resources and market strengths is anticipated to accelerate the development of ProPhase's genomics and diagnostic programs, facilitating global expansion.
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About PRPH
ProPhase Labs, Inc. is a biotech, genomics, and consumer products company. The Company is engaged in providing whole genome sequencing solutions, diagnostic development, such as its potentially life-saving test for the early detection of esophageal cancer and a direct-to-consumer marketing platform for OTC dietary supplements. It develops, manufactures, and commercializes health and wellness solutions. Its Diagnostic services segment provides diagnostic information services to a range of customers in the United States, including health plans, third-party payers and government organizations. Its Consumer products segment is engaged in the research, development, manufacture, distribution, marketing and sale of OTC consumer healthcare products and dietary supplements in the United States and provides personal genomics products and services. The Company also develops and markets dietary supplements under the TK Supplement brand, which includes Legendz XL and Triple Edge XL.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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