Nutriband Inc. (NTRB) had a pretty good Monday, with shares climbing after the company announced it's selling off most of its Pocono Pharmaceutical subsidiary.
The Deal Breakdown: Nutriband is offloading a 90% stake in Pocono Pharmaceutical to EarthVision Bio for $5 million. The transaction is set to wrap up on December 31, 2025, assuming everything goes smoothly.
Here's the interesting part: Nutriband shareholders aren't getting completely cut out of the action. They'll hold onto a 10% ownership stake in EarthVision Bio once the dust settles.
EarthVision Bio, for those keeping track, is working on developing and commercializing sustainable products created by Dr. Gordon Moore and Dr. Hans Franke.
What's the Money For? Nutriband has clear plans for the $5 million. The company intends to funnel proceeds into continued development of AVERSA Fentanyl, an abuse-deterrent transdermal fentanyl patch. The product is designed to reduce both misuse and accidental exposure, addressing a significant public health concern.
Market Reaction: Investors seemed to like what they heard. Nutriband shares climbed 16% to $5.57 on Monday.
