Yumanity Therapeutics (NASDAQ:YMTX) stock is rocketing higher on Monday after the clinical-stage biopharmaceutical company announced a special dividend.
According to a press release from the company, this special dividend will range in price from $1.34 to $1.43 per share. Holders of YMTX stock will receive this cash dividend no later than Dec. 29.
This Yumanity Therapeutics cash dividend is in connection with the company’s planned merger with Kineta. That will see the two companies take part in a reverse merger, which will result in Kineta being listed on the Nasdaq exchange.
As part of the merger agreement, Yumanity Therapeutics is selling some of its assets to Janssen Pharmaceutica NV, which is owned by Johnson & Johnson (NYSE:JNJ). Funds from the sale will be used to reach the minimum cash holding of $7.5 million required for the merger. The remaining will be used for the special dividend.
Yumanity Therapeutics also notes the special dividend won’t be paid until the asset sale and merger are both complete. Shareholders of YMTX stock are set to vote on the merger agreement in a special meeting on Dec. 13, 2022.
YMTX Stock Movement
Shares of YMTX stock are seeing incredibly heavy trading on Monday morning. As of this writing, close to 1 million shares of the company’s stock have changed hands. That’s a massive leap compared to its daily average trading volume of about 34,000 shares.
YMTX stock is up 16.3% as of Monday 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.