AeroClean (NASDAQ:AERC) stock is gaining on Tuesday after the company revealed merger plans with Molekule to create a major player in the air purification market.
AeroClean and Molekule are planning for an all-stock transaction that will result in a combined company. This would see holders of AERC stock own 50.5% of the new company. The remaining 49.5% will belong to current Molekule shareholders.
Benefits of the deal include the combined company’s wealth of proprietary and patented air purification devices approved by the FDA. Also, the combined company is expected to generate revenue of $45 million in fiscal 2022.
Jason DiBona, CEO of AeroClean, said the following about the deal:
We are excited to be combining with a market leader for premium, proprietary, patented, and FDA-cleared air purification products to capitalize on an estimated $15 billion global air purification market that is projected to double by 2030 based on current growth rates.
When Will the Merger Close?
AeroClean and Molekule are expecting the deal to close in early in the first half of 2023. It already has full support from both companies boards of directors. Also, shareholders representing a majority of Molekule investors have agreed to vote in favor of the combination.
Shares of AERC stock are seeing heavy trading on today’s merger news. That has some 18 million units on the move as of this writing. That’s well above its daily average trading volume of about 2 million shares.
AERC stock is up 36.5% as of Tuesday morning.
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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.