NewGenIvf (NASDAQ: NIVF) stock soars over 66% in the intraday trading as the company explores merger possibilities with healthcare company European Wellness Investment Holdings (EWIHL).
The biotech firm NewGenIvf (NIVF) has inked a non-binding term sheet, setting the stage for a potential reverse merger with European Wellness Investment Holdings (EWIHL).
Per the term sheet, NewGenIvf would issue 53,600,000 (53.60 million) of its ordinary shares to the shareholder(s) of EWIHL in exchange for 100% equity interest in EWIHL. The proposed price per share stands at $5, valuing the transaction at $268 million. Simultaneously, NewGenIvf aims to secure $30 million from public or private shareholders, in a manner agreeable to both parties.
Mr. Siu Wing Fung Alfred, CEO of NewGenIvf, expressed enthusiasm about the potential merger, highlighting the several anticipated benefits of the merger. These include operational synergies, expanded global reach, and improved fertility outcomes. He emphasized the financial strength gained through a profitable business acquisition and the $30 million fundraising, enabling NewGenIvf to fuel future growth.
He added,
“Moreover, the issuance of additional ordinary shares will increase our market capitalization, ensuring higher trading liquidity. Finally, I believe that the deemed price of $5 per share confirms that our current share price is undervalued compared to the long-term fair valuation of the company.”
NewGenIvf (NASDAQ: NIVF) Stock Price Action
At the time of this report, NIVF stock is trading at $1.28, showing a 66.23% increase from the previous trading session. This week, it has surged in value by 56.10%. Trading activity has seen 79,982,610 (79.98 million) shares changing hands, exceeding the average daily volume of 232.89K.
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