Harrow Health Inc. agreed to sell all assets of its wholly owned unit Park Compounding Inc. that are related to the compounding business of pharmaceuticals not used for eye care to Noice Rx LLC for $8 million.
Under the deal, Harrow Health will issue Noice an $8 million note at an annual interest of 9.5%. In turn, Noice will make 96 monthly cash payments to Harrow Health over an eight-year period after the closing.
Harrow Health will also receive a warrant that can be exercised after five years to own a 20% stake in Noice.
Harrow Health expects to close the transaction on or before Aug. 27, subject to closing conditions including a temporary pharmacy and sterile license permit from the California State Board of Pharmacy.