Medirom Healthcare Technologies (NASDAQ:MRM) stock is rocketing higher on Thursday following news of a major deal for the company. The stock was already doing well in pre-market trading and is continuing that momentum into normal trading hours.
What Happened With MRM Stock?
Medirom signed a deal with Zacc Kabushiki Kaisha. This deal has Medirom and Zacc entering into a share transfer agreement. It will result in the company acquiring all outstanding shares of Zacc stock.
Medirom is spending big money to bring Zacc into its fold. The share transfer agreement will come in two parts and has MRM paying a total of $3.36 million for those shares.
What It Means
Medirom acquiring all shares of Zacc means it will own three new luxury hair salon brands. That includes Zacc vie, Zacc raffine, as well as Zacc ginza. All of these hair salon brands have been around for over 30 years.
What’s Next for MRM Stock?
All that’s left for Medirom is to complete the share transfer agreement. The company already made an initial payment of $627,112 at the end of August. It plans to make a second payment of $1.39 million at the start of October when it acquires 60% of Zacc shares. The final $1.34 million payment will grant it the rest of the shares at the start of the new year.
MRM’s acquisition news is sparking interest in the stock today. As of this writing, some 24 million shares have been traded. That’s quite the surge compared to its daily average trading volume of just 43,000 shares.
MRM stock was up 97.4% as of Thursday morning.
Investors looking for more recent stock market news will want to keep reading!
We’ve got all the latest coverage that traders need to know about this week. A few examples include what’s happening with The Metals Company (NASDAQ:TMC), Bit Mining (NYSE:BTCM), and Cassava Sciences (NASDAQ:SAVA). You can learn about those matters at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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