By Gule Rukhsar
9:15 PM UTC
Following the announcement of a merger agreement, EYES stock added a huge 15.00% in the after-hours on Monday. On February 07, Second Sight Medical Products Inc. (EYES) and Nano Precision Medical Inc. (NPM) announced Merger Agreement for creating a leading therapeutic implant company.
During the regular trading session, the stock fluctuated between a high of $1.4107 and a low of $1.3600. EYES closed the session at $1.400 with a gain of 2.94% at a volume of 1.6 million shares. Consequent to the announcement, the stock went up to reach $1.6100 in the after hours. The after-market session witnessed a hefty volume of 1.45 million shares on Monday.
The implantable visual prosthetics developer, Second Sight Medical Products Inc. was founded in 1998. Currently, the company has a market capitalization of $53.6 million. The 39.41 million outstanding shares of the company have declined by 14.11% year to date. Moreover, EYES lost a value of 44.88% last year.
As per the announcement, the companies have entered into a definitive merger agreement. Under the agreement, in an all-stock transaction, NPM will merge with a wholly-owned subsidiary of EYES. The surviving company Nano Precision Medical will be owned by Second Sight. Furthermore, the focus of the newly-formed merged company will be the development of innovative implants for chronic diseases.
Before the merger, the company will provide $8 million to NPM for working capital and to speed up pipeline programs. Upon the completion of the merger, EYES shareholders will join NPM shareholders as well as AstraZeneca. AstraZeneca has been a strategic investor in NPM since 2016.
The proposed merger agreement has been approved by the boards of both the involved companies. And the merger is expected to close somewhere in the second or third quarter of 2022.
In addition, 134 million common stock shares will be issued by EYES for the complete ownership of NPM. Subsequently, the company’s shareholders will have a 23% equity share in the combined company.
On August 11, 2021, the company announced a new NIH grant supplement for its Orion study. National Institutes of Health awarded the grant supplement to fund its study for insights into risk and benefits analysis by blind people for neuroprostheses.
On June 25, 2021, EYES announced the successful closing of its underwritten public offering of 11,5000,000 common stock shares. The public offering price of the common stock shares was $5.00 per share with gross proceeds of $57,500,00 including over-allotment option.