Obviously not.Advangen Inc Divestment and Earn-Out AgreementAN1...

Obviously not.




Advangen Inc Divestment and Earn-Out Agreement
AN1 has agreed to divest its wholly-owned subsidiary Advangen Inc to TK Holdings LLC, an
entity owned by ADV Japan’s local management. AN1 will retain an earn-out arrangement to
benefit from ADV Japan performance over a 15 year period.
In recent years, ADV Japan has faced a challenging trading environment due to the COVID19 pandemic and significant regulatory changes associated with import permits into China.
Moreover, revenue from QVC (ADV Japan’s single largest customer) has continued to decline
approximately 25% per annum over the past three years. ADV Japan contributed $0.6m of
AN1’s $2.9m FY22 underlying EBITDA loss (unaudited) and losses are expected to continue
into FY23.
Considering these challenges and other potential growth opportunities, AN1 has agreed to
strategically divest its direct interest in ADV Japan and retain exposure to ADV Japan’s longterm growth. The transaction will leave AN1 debt free and with a strong cash position to pursue profitable growth in a simplified operating structure.