PhotoMedex Sells LCA-Vision Subsidiary to Vision Acquisition, LLC for $40M

PhotoMedex, Inc. (NasdaqGS and TASE: PHMD) (the “Company”) announces the sale of its LCA-Vision subsidiary to Vision Acquisition, LLC for $40 million in cash. Excluding working capital adjustments and professional fees, PhotoMedex will realize net proceeds of approximately $35.3 million. The Company's secured creditors as well as its board of directors have approved this transaction, which closed effective as of January 31, 2015. LCA-Vision operates 59 LasikPlus® vision centers in the U.S., including 51 full-service LasikPlus fixed-site laser vision correction centers and eight pre- and post-operative LasikPlus® satellite centers. Vision Acquisition has granted PhotoMedex sole and exclusive rights to provide certain excimer light source products, systems and equipment to LCA-Vision's LasikPlus centers for the next seven years. The terms of each placement, if any, will be determined on a center-by-center basis. PhotoMedex intends to use the proceeds from this transaction to pay down portions of its outstanding revolving line of credit and term loan, while continuing to pursue a refinancing of the Company's secured debt. “The sale of LCA-Vision allows PhotoMedex to repay certain indebtedness while providing exclusive rights to place XTRAC lasers for the treatment of psoriasis and vitiligo in LasikPlus centers, subject to negotiation with the new owners,” said Dolev Rafaeli, CEO of PhotoMedex. “We look forward to focusing on our no!no!, Kyrobak, XTRAC and Neova businesses, among others, and to returning PhotoMedex to profitability. The people of LCA-Vision are among the best in the laser vision correction industry, and we wish them well in the capable hands of their new owners.” Canaccord Genuity Inc. provided investment banking services to PhotoMedex for this transaction and Proskauer Rose LLP provided legal services. Wood & Lamping LLP provided legal services to Vision Acquisition, LLC.