ABIL stock is skyrocketing today on news of a deal to acquire the company behind Ultimate Interception.
Ability (NASDAQ:ABIL) says that it is planning to acquire all issued and outstanding shares of the Ultimate Interception supplier. It is also planning to issue 354,609 of its own shares in the deal, which represents a value of $1 million based on ABIL stock’s closing price on Nov. 20, 2018.
Ability notes that the deal with the Ultimate Interception supplier will also have it issuing three seller warrants to the company. Each of these seller warrants will be for 100,000 shares of ABIL stock at a price of $3.81 each. The deal makes one of these warrants exercisable for 30 days following the first, second and third anniversaries of the closing date for the deal.
Ability points out that Ultimate Interception is the principal cellular interception system that it uses. If the deal goes through, ABIL is expecting to suffer $750,000 in additional operating expenses every year. However, it says that the deal will no longer require it to share revenue with the supplier.
Ability still needs to complete customary closing conditions before it can more forward with its acquisition of the Ultimate Interception supplier. It says that it has already supplied the U.S. Securities and Exchange Commission with a Form 6-K containing more details about the deal.
Ability does not provide an estimate for when it expects the acquisition deal to close.
ABIL stock was up 150% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.