WaveDancer, Inc. (NASDAQ: WAVD) shares are experiencing a notable surge, escalating by 69.54% to $2.56 in the current session. This uptick in WaveDancer stock on the charts today is attributable to the revelation of a merger agreement.
Today, WaveDancer (WAVD) formally entered into a conclusive merger agreement with Firefly Neuroscience, Inc., a privately held medical technology entity in its commercial stage. The agreement, executed by WaveDancer, outlines the consolidation of the two companies through an all-stock transaction.
The resultant entity will concentrate on the continued development and commercialization of Firefly’s FDA-approved Artificial Intelligence-driven Brain Network Analytics (BNA) platform. The expected closure of this merger in Q1-2024 will herald the rebranding of the amalgamated enterprise as Firefly Neuroscience, Inc., trading on the Nasdaq Capital Market.
Following a meticulous evaluation of the long-term prospects as a publicly traded entity, the WAVD Board concluded that this merger aligns with the best interests of stockholders and presents an enticing prospect to unlock substantial value, particularly as Firefly pursues diverse market opportunities for its BNA platform. Firefly’s BNA platform, having successfully navigated the rigorous FDA approval process and undergone comprehensive academic peer-review, underscores its robust standing.
In accordance with the merger agreement’s stipulations, each outstanding share of Firefly common stock will be converted into WaveDancer common stock based on a fixed exchange ratio, with any resulting fractional shares rounded to the nearest whole share. At the merger’s effective time, Firefly’s securityholders will possess approximately 92% of the combined company, while WaveDancer’s securityholders will hold around 8%, on a fully diluted basis.
The extent of WaveDancer’s ownership may fluctuate in the event of capital raising surpassing the predefined minimum in the Definitive Merger Agreement. Post-merger, WaveDancer will assume the name “Firefly Neuroscience, Inc.,” with its corporate headquarters situated in Toronto, Ontario. Jon Olsen, appointed as Chief Executive Officer of Firefly in September 2020, will lead the combined company.
