Assure Holdings (NASDAQ: IONM) stock soared during intraday trading Thursday after the company withdrew a proposed offering linked to Danam Health Merger.
Assure Holdings Corp has announced the cancellation of its proposed stock offering, initially disclosed on May 3. This move comes after the company terminated its merger plans with Danam Health.
Assure originally intended the stock offering to support its merger strategy with Danam Health, involving a stock-for-stock transaction. With the merger now off the table, Assure has deemed the offering unnecessary for its current corporate objectives.
Had the merger proceeded, it would have marked a significant transformation for Assure, including rebranding its current IONM stock ticker to a new symbol, and a name change to Danam Health Holding Corporation.
Investors welcomed the news of the withdrawn offering, as it alleviated concerns about potential dilution of their stakes in the company. They also avoid having their shares converted to a 10% stake in Danam Health, which would have been part of the merger agreement.
Earlier this month, Assure released its first-quarter financial results. The company posted earnings per share of -67 cents and revenue of $9,000, far below the analyst estimate of $6.00 million.
Assure Holdings (NASDAQ: IONM) Stock Reaction
On Thursday, IONM stock surged 82.76%, closing at $0.4240, marking a 92.90% increase for the week. The trading volume was 190,253,792 shares, significantly higher than the average daily volume of 3.60 million.
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