Neos Therapeutics News: Why NEOS Stock Is Soaring Today

Neos Therapeutics (NASDAQ:NEOS) news for Thursday concerning a merger with Aytu BioScience (NASDAQ:AYTU) has shares of NEOS stock and AYTU stock on the rise.

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The merger will have Neos Therapeutics combining with a wholly-owned subsidiary of Aytu BioScience. The combined company will continue to be led by AYTU CEO Josh Disbrow with CEOS CEO Jerry McLaughlin joining the company’s Board of Directors.

Instead, of cash, this merger agreement will have the company’s trading shares of their stocks. This will have shareholders of NEOS stock receiving .1088 shares of AYTU stock for each share that they own.

Once the deal is complete, NEOS stockholders will own 30% of the newly-merged company. It’s also worth noting that the stock trade offer values the deal at $44.9 million based on the 10-day volume-weighted average price of AYTU stock on Wednesday.

Disbrow had this to say about the news pushing NEOS stock higher today.

“This is a truly transformative transaction, elevating the newly combined company to a $100 million revenue, leading specialty pharmaceutical company positioned for what we expect to be an accelerated path to profitability, continued revenue growth and further business diversification.”

The Boards of Directors at both companies have voted in favor of the merger deal. Other customary closing conditions, such as shareholder approval, are still needed. So long as there are no hiccups along the way, the two companies expect the deal to close in the second quarter of 2021.

NEOS stock was up 59.8% and AYTU stock was up 30.2% as of Thursday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/12/neos-therapeutics-news-boosts-neos-stock-up/.

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