Why Is INVO Bioscience (INVO) Stock Up 325% ?
hares of INVO Bioscience (INVO) stock surged more than 250% today.
This move was a direct result of a merger agreement announced between the company and Naya Biosciences.
The company’s current share price has been brought up to the reported acquisition price today.
INVO stock - Why Is INVO Bioscience (INVO) Stock Up 325% Today?
One of the most impressive movers making the most noise in this session has to be $INVO BioScience, Inc.(INVO)$ .Shares of INVO stock have more than tripled in today’s session, surging well more than 325% yesterday
This move follows an announcement that INVO will acquire NAYA Biosciences in a deal that will help to diversify the company’s overall business model. This all-stock deal is reportedly set to close before the end of the year and is really more of a merger than an outright acquisition. In fact, when it’s all said and done, Naya shareholders will own 88% of the combined entity. Thus, it appears INVO is really the one being acquired here.
With that said, the market is clearly cheering what it’s hearing today. Let’s dive into why the market is cheering this deal today.
INVO Stock Soars on Merger Announcement
In the world of biotech, companies in the micro-cap to small-cap range are typically looking for an exit or partner to bring a drug or treatment to market. For companies like INVO, days like this are what many investors are after. The surge in INVO stock to more than $2 per share (reflecting a valuation of around $5 million) makes sense. That’s because this merger reportedly values INVO at “more than $5 million,” suggesting the market has boosted its price right up to the expected amount.
We’ll have to see if this deal ultimately closes, and we could be in for some volatility until that happens. However, it does appear this deal is mutually beneficial, with Naya reporting in its press release:
“The Merger and expected financing are intended to allow NAYA to strengthen INVO’s fertility operations through the infusion of new capital to expand INVO’s footprint of fertility clinic operations across the United States, as well as advance the development of NAYA’s unique clinical stage portfolio of oncology therapeutics.”
Source: InvestorPlace
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