Chad Therapeutics, Inc. to Sell Its Oxygen Conserver Business and Focus on Development and Marketing of Patented Medical Devices For the Sleep Disorder Market

CHATSWORTH, Calif.--(BUSINESS WIRE)--CHAD Therapeutics, Inc. (AMEX:CTU) announced today that it has entered into a definitive agreement to sell to Inovo Inc., a privately held manufacturer of oxygen regulators and conservers based in Naples, Florida, substantially all of the Company's assets related to the oxygen conserver business, including accounts receivable, inventory, and certain equipment and intellectual property, for $5,250,000 in cash. The purchase price is subject to adjustment based on changes in working capital between the signing date and the closing of the sale, provided that in no event will the selling price exceed $5,500,000. Based on the current selling price, the Company would not incur a loss on the sale of these assets. Pursuant to the agreement, Inovo would assume certain liabilities and obligations related to CHAD's oxygen conserver business. CHAD will retain the assets related to its TOTALO2 system and in-home oxygen transfilling business as well as products in development for the sleep disorder market. The agreement is subject to certain closing conditions, including approval of CHAD's shareholders.