Miromatrix Medical (NASDAQ:MIRO) stock is rocketing higher on Monday after announcing an acquisition deal with United Therapeutics (NASDAQ:UTHR).
That deal has United Therapeutics agreeing to acquire Miromatrix Medical for $91 million in cash, which comes to $3.25 per share. That represents a premium of 170% over the 30-day volume-weighted average trading price for MIRO stock when markets closed on Friday.
The deal also includes a potential additional payment of $1.75 per share in cash. That’s tied to development milestones for Miromatrix Medical’s mirokidney treatment. Those milestones must be met by Dec. 31, 2025, for shareholders to receive the payment.
Jeff Ross, Ph.D., CEO of Miromatrix Medical, said the following about the news:
“This transaction provides our shareholders with a substantial premium and allows them to participate in the potential upside of our combination, while accelerating the development of our pipeline as we strive to make bioengineered organs a reality for the many patients in need.”
What This Means for MIRO Stock
Miromatrix Medical and United Therapeutics are expecting this deal to close in the fourth quarter of 2023. It requires the tender of a majority of MIRO shares for approval. All shares not tendered after the deal is approved will be acquired by United Therapeutics.
With today’s news comes heavy trading of MIRO stock. As of this writing, more than 582,000 shares have changed hands. That’s already well above its daily average trading volume of about 19,000 shares.
MIRO stock is up 234.7% 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.
