ProPhase Labs Soars After Signing Letter of Intent for Reverse Merger with Advanced Biological Laboratories

Proposed Merger: ProPhase Labs and Advanced Biological Laboratories have entered a non-binding letter of intent for a reverse merger, with ABL expected to become the majority owner of the combined entity.

Valuation and Dividend: The preliminary valuation for ProPhase's legacy business may reach approximately $30 million, and a special cash dividend of up to $10 million may be declared for ProPhase shareholders.

Ownership Structure: Upon completion of the merger, ABL shareholders would own about 76% of the new company, which will focus on ProPhase’s Nebula Genomics platform and other health initiatives.

Market Reaction: Following the announcement, ProPhase Labs shares surged over 50% in premarket trading, reflecting positive investor sentiment regarding the merger.