Akumin (NASDAQ:AKU) stock is climbing higher on Monday after the outpatient diagnostic imaging services company agreed to be taken private.
According to a press release from Akumin, the company has reached a go-private agreement with alternative investment firm Stonepeak. Akumin notes that this agreement has it preparing Chapter 11 filings.
Akumin is expecting court approval for the deal within 45 days. Once it’s been taken private by Stonepeak, the company will undergo a financial restructuring. The goal is to improve its balance sheet while increasing its liquidity.
Riadh Zine, chairman and CEO of Akumin, said this about the news:
“As a result of this transaction, Akumin will move forward as a private company with increased financial flexibility and a strengthened balance sheet, better positioned to execute on our strategic plan to become the outpatient partner of choice for hospitals and health systems.”
What This Means for AKU Stock
When Stonepeak completes its acquisition of Akumin, the company will no longer be public. As a result, shares of AKU stock will stop trading on public exchanges. Investors in AKU stock will get $25 million in cash and certain contingent value rights as part of the deal.
AKU stock is up 51% as of Monday morning as some 5 million shares change hands. For comparison, its daily average trading volume is around 1.3 million shares.
Investors seeking out even more of the most recent stock market news will want to keep reading!
We’re offering up all of the hottest stock market news traders need to know about on Monday! Among that is what has shares of LumiraDx (NASDAQ:LMDX) stock up today, the biggest pre-market stock movers this morning and more. All of that news is ready to go below!
More Stock Market News for Monday
- Why Is LumiraDx (LMDX) Stock Up 323% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
- EV Stocks Alert: China Just Issued a Key Blow to U.S. EV Makers
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risk.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
