Second Sight Medical (NASDAQ:EYES) stock is up 15% this morning after announcing a merger with Nano Precision.
So what do you need to know? To start, Second Sight Medical is acquiring Nano Precision through an all-stock deal. As part of this, it will issue 134 million shares. Current EYES stock holders will own roughly 23% of the combined company.
Right now, Second Sight expects the deal to close by the end of the third quarter. Before it does, it will be subject to stockholder approval and other routine processes.
5 Things to Know About the EYES Stock Deal
- Based in Sylmar, California, Second Sight Medical develops new technologies designed to delay, treat and enhance the lives of blind individuals.
- Nano Precision, based in Emeryville, California, is a biopharmaceutical company that is focused on the development of cutting-edge miniaturized implants that distribute medicines to treat chronic diseases. The products have not yet been approved by the U.S. Food and Drug Administration.
- Pharmaceutical giant AstraZeneca (NASDAQ:AZN) has been a strategic investor in Nano Precision since 2016.
- Second Sight Board Chair Gregg Williams said of the Nano Precision deal, “The merger with NPM aligns with our expanded vision to become a top device and drug implant company.”
- EYES is a penny stock, and finished trading yesterday at $1.40. Prior to today’s move higher, the stock had declined 24% year to date and was down 65% over the last six months. Nano Precision is privately held.
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On the date of publication, Joel Baglole 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.