PharmChem, Inc. Expands Horizons Through Acquisition by Alcohol Monitoring Systems, Inc.

PharmChem, Inc. Joins Forces with Alcohol Monitoring Systems, Inc.

On July 21, 2025, PharmChem, Inc. (OTC: PCHM), renowned for its innovative sweat patches that detect drug abuse, declared a significant advancement in its growth journey by announcing its acquisition by Alcohol Monitoring Systems, Inc. This collaboration is anticipated to enhance PharmChem's operational capabilities and broaden its customer base, facilitating better service delivery while fostering new economic opportunities for employees.

Acquisition Details

The definitive agreement outlines that PharmChem's shareholders will receive a cash payment of $3.75 per share. This price reflects a noteworthy 22% premium compared to PharmChem's closing price of $3.07 per share as of January 31, 2025, the day before it disclosed plans to explore strategic alternatives. The Board Chairman, Tim Eriksen, expressed confidence in this acquisition, asserting that it validates the Company's positioning within the industry. He stated, "This strategic action signifies that PharmChem's offerings would yield greater value as part of a larger organization rather than operating independently."

Interim CEO Thompson Clark emphasized the rigorous process undertaken to achieve this deal, reporting significant interest from various parties. He highlighted that joining forces with Alcohol Monitoring Systems will propel PharmChem into a position where its products can reach broader markets, ultimately enhancing customer support and creating new growth opportunities for employees. He noted, "It is not every day that a deal is achieved that is a win for all stakeholders, but this is one of those days."

Impact on Both Companies

Chris Linthwaite, CEO of Alcohol Monitoring Systems, articulated that the main goal driving this acquisition is to foster improved public safety through compliance products and services. By incorporating PharmChem’s drug testing capabilities, Alcohol Monitoring Systems aims to complement its existing offers in alcohol and location monitoring technologies. Linthwaite remarked on the complexity faced by customers in maintaining public safety standards and assured that the acquisition would expand their capabilities to meet these increasing demands.

As the acquisition awaits approval from PharmChem's shareholders along with other customary conditions, the majority of PharmChem's board unanimously supported the transaction, and shareholder support agreements are in place for 52% of outstanding shares. Relevant details regarding the shareholder vote and the process will be communicated in the coming days, ensuring transparency and continuous stakeholder engagement.

Looking Ahead

This collaboration marks a pivotal moment for PharmChem and represents its commitment to enhancing its product lineup and service capabilities through strategic partnerships. The company is poised to leverage the strengths of Alcohol Monitoring Systems to reach new heights in the drug detection sector while maintaining its core focus on innovation.

For shareholders or potential investors seeking additional information regarding this acquisition, they can reach out via email to CFO Shana Veale at [email protected].

In conclusion, PharmChem, Inc. stands at the threshold of a promising new chapter, forging a partnership that seeks to redefine its impact within the drug testing landscape and drive towards a future filled with growth and expanded opportunities for all stakeholders involved. As the market reacts, those in the sector will watch closely to see how this acquisition unfolds and the broader implications for drug monitoring technologies in the coming years.