CombiMatrix shares jump on buyout news
Investing.com
Published Aug 01, 2017 02:39PM ET
CombiMatrix shares jump as company signs agreement to merge with Invitae
Investing.com - Shares of CombiMatrix Corp (NASDAQ:CBMX) rallied on Tuesday and were up about 40% on the home stretch to the closing bell with investors cheering a proposed merger of the company with InVitae Corp (NYSE:NVTA)
InVitae will purchase CombiMatrix, a family health molecular diagnostics company specializing in DNA-based reproductive health and pediatric testing services, in an all stock acquisition worth approximately $33 million.
Based on the current forecasts and estimates of Net Cash, and based on a fixed price per share of Invitae’s common stock of $9.49, the company presently estimates that the CombiMatrix price per share received by CombiMatrix common stockholders would be between approximately $8.00 and $8.65. But, because the value of the transaction to CombiMatrix stockholders is based on a fixed price per share of InVitae's common stock of $9.49, the overall value will fluctuate in unison with InVitae common stock.
Commenting on the deal, Mark McDonough, President and Chief Executive Officer of CombiMatrix, stated, “We are excited about the prospect of joining forces with InVitae, one of the nation’s fastest-growing genetics information companies, to help achieve even higher levels of patient satisfaction, growth and shareholder value."
The merger has been approved by each company’s board of directors but still has to meet other conditions including shareholder approval.
CombiMatrix Corp. set a new 52-week high of $7.35 on Tuesday. InVitae's shares were up 8.3% when this article went to publish.
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Written By: Investing.com
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