Sharps Technology (NASDAQ: STSS) stock skyrocketed during intraday trading Tuesday after the company secured exclusive syringe manufacturing agreements with Nephron SC and Nephron Sterile.
In an exchange filing, Sharps Technology announced revisions to its agreements with Nephron SC and Nephron Sterile Compounding Centers. These amendments update the original terms set on September 22, 2023. The initial transaction did not close under its original terms, but it has now been redefined with new provisions.
The newly established agreements include a five-year Purchase Agreement involving Sharps Technology, Nephron SC, and Nephron Sterile. Under this agreement:
- Nephron will exclusively use Sharps Technology as its pre-filled copolymer syringe manufacturer.
- The companies have committed to purchasing an aggregate minimum of approximately $188.5 million worth of syringes from Sharps Technology.
The purchase agreement also encompasses an amendment to the cash consideration structure. It stipulates that $35 million will be payable in cash upon closing, with $1 million to be remitted as a deposit within 14 days following approval by the seller’s senior lender.
Earlier this year, in March, Sharps Technology entered into a cooperative agreement with Roncadelle Operations in Italy. This collaboration involves the joint sale and distribution of their respective products within their areas of influence.
Sharps Technology (NASDAQ: STSS) Stock Reaction
On Tuesday, STSS stock surged 141.44%, closing at $0.52, marking a 108.38% increase for the week. The trading volume was 303,373,024 shares, significantly higher than the average daily volume of 5.88 million.
