NEXGEL Acquires International Beauty Brand, Silly George
16 May 2024 - 11:00PM
NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: “NXGL”), a
leading provider of ultra-gentle, high-water-content hydrogel
products for healthcare and consumer applications, today announced
the acquisition of Silly George, an international beauty company
with specialty in eye and eyelash consumer products and a revenue
run rate of approximately $2 million.
Silly George offers its loyal consumer base a
full product line of eye and eyelash products including hassle-free
alternatives to harmful glue-on eyelashes such lash extensions,
lash serum and accessories. Silly George is predominately sold DTC
and on Amazon not only in the United States, but internationally in
the United Kingdom, Australia and the Netherlands as well. The
Company recently launched a new line of Pop-On Lashes leveraging
its new lash technology to create non-toxic, long-wear eyelash
extensions that are easy to apply and remove and can last for five
to ten days.
“We are continuously evaluating opportunities to
acquire leading health and beauty consumer product brands that are
accretive and synergistic. Silly George will add approximately $2
million in annualized revenue and represents another step forward
in achieving the critical mass and cash flow necessary to reach our
goal of profitability,” said Adam Levy, CEO of NEXGEL. “Leveraging
our consumer brand platform, there are immediate operational
synergies that exist through the combination of our companies
including optimization of marketing and overlap in expenses that
will drive operating margin expansion. Additionally, Silly George
has built a large social media following and consumer database,
which includes 88,000 Facebook and 83,000 Instagram followers as
well as over 254,000 customer emails, all of which will offer us
cross selling opportunities. We welcome Miranda Semmens and her
team to NEXGEL.”
Miranda Semmens, CEO of Silly George, stated,
“We are proud of the brand that we have built to support the beauty
and health of our consumers eyes and lashes. NEXGEL’s focus on skin
integrity and overall skincare strongly complements our commitment
to high-quality beauty products. Given its strong record of
bringing innovative health and beauty products to the forefront of
the consumer healthcare industry, we believe NEXGEL is the right
partner to bring our business forward in the next stage of our
growth.”
NEXGEL has acquired all of the assets of Silly
George for $400,000 in cash, $200,000 in NEXGEL common stock, and a
4-year net profit earn out. Under the terms of the agreement,
management of Silly George will remain in place and inventory will
be provided by the seller at cost and paid for after the sale of
each unit.
About NEXGEL, INC.
NEXGEL is a leading provider of healthcare,
beauty, and over-the-counter (OTC) products including ultra-gentle,
high-water-content hydrogels. Based in Langhorne, Pa., the Company
has developed and manufactured electron-beam, cross-linked
hydrogels for over two decades. NEXGEL brands include Silverseal,
Hexagels, Turfguard, Kenkoderm, and Dermablock. Additionally,
NEXGEL has strategic contract manufacturing relationships with
leading consumer healthcare companies.
Forward-Looking Statement
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) (which Sections were
adopted as part of the Private Securities Litigation Reform Act of
1995). Statements preceded by, followed by or that otherwise
include the words “believe,” “anticipate,” “estimate,” “expect,”
“intend,” “plan,” “project,” “prospects,” “outlook,” and similar
words or expressions, or future or conditional verbs, such as
“will,” “should,” “would,” “may,” and “could,” are generally
forward-looking in nature and not historical facts. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the Company's
actual results, performance, or achievements to be materially
different from any anticipated results, performance, or
achievements for many reasons. The Company disclaims any intention
to, and undertakes no obligation to, revise any forward-looking
statements, whether as a result of new information, a future event,
or otherwise. For additional risks and uncertainties that could
impact the Company's forward-looking statements, please see the
Company's Annual Report on Form 10-K for the year ended December
31, 2022, including but not limited to the discussion under “Risk
Factors” therein, which the Company filed with the SEC and which
may be viewed at http://www.sec.gov/.
Investor Contacts:Valter Pinto,
Managing DirectorKCSA Strategic
Communications212.896.1254valter@kcsa.com
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