Aterian sells brands for $18 million, secures $7 million investment

Aterian, Inc., a consumer products company, has mailed proxy materials to its stockholders concerning the sale of its marquee brand portfolio for $18 million and a simultaneous $7 million strategic investment. The company's board is urging stockholders to vote in favor of the proposed transactions at a special meeting scheduled for July 10.

The sale includes substantially all assets associated with Aterian's e-commerce brands, such as Mueller Living, PurSteam, hOmeLabs, Squatty Potty, Healing Solutions, and Photo Paper Direct, to Trademark Global, LLC. Net proceeds from the sale, estimated between $10.6 million and $14.2 million, are expected to be distributed to stockholders in the third quarter, potentially including contingent value rights (CVRs).

Concurrently, Aterian has entered into a securities purchase agreement with investor David E. Lazar for a $7 million capital injection. Mr. Lazar and his affiliates have waived their rights to the net proceeds from the asset sale, ensuring that the upside from the monetization belongs solely to Aterian's stockholders as of a to-be-determined record date.

CEO Arturo Rodriguez stated that the transactions aim to unlock the value within the brand portfolio and deliver it directly to stockholders. The $7 million investment will allow Aterian to pursue a strategic transaction in a business with superior market potential and focus resources on high-growth industries. The board strongly recommends a 'FOR' vote on all proposals at the special meeting.

Stockholders will also vote on the election of directors and proposals related to the issuance of stock upon conversion of preferred stock as part of the new investment.