Xcel Brands, Inc. Asset Purchase Agreement

Xcel Brands, Inc., through its subsidiaries IP Holdings and JR Licensing, has entered into an asset purchase agreement with Judith Ripka Designs, LLC. The agreement involves the sale of substantially all assets of JR Licensing, including the "Judith Ripka" brand name and trademarks, to the Buyer. The transaction includes an initial cash payment of $2.3 million at closing, with the potential for an additional $0.75 million in contingent consideration. This sale represents a significant divestiture of assets for Xcel Brands.