Miromatrix Medical Inc. (NASDAQ: MIRO) shares have surged dramatically in the current trading session. At the last check, Miromatrix’s stock has experienced a remarkable upswing of 226.72%, reaching a trading price of $3.30. Additionally, the stock of MIRO is demonstrating a robust performance on this Monday, marked by a substantial increase in trading activity.
This phenomenon is evident as approximately 2 million shares of the company have changed hands during the morning trading session. Such trading volume significantly surpasses the typical daily trading volume for Miromatrix, which stands at about 19.5K shares.
In a noteworthy development, Miromatrix (MIRO) has officially announced a binding agreement with United Therapeutics Corporation, outlining United Therapeutics’ intention to acquire Miromatrix. This acquisition is poised to expand the array of organ manufacturing initiatives under United Therapeutics’ umbrella, which encompasses ex-vivo lung perfusion, xenotransplantation, 3-D bioprinting, and regenerative medicine approaches.
The overarching goal of these endeavors is to establish a limitless supply of viable transplantable organs. In line with this agreement, United Therapeutics will initiate a tender offer to procure all outstanding MIRO shares. The cash purchase price per Miromatrix share at closing is set at $3.25, resulting in a total transaction value of approximately $91 million.
Moreover, an additional $1.75 per MIRO share in cash will be awarded upon the attainment of a significant clinical development milestone, which is tied to Miromatrix’s pioneering mirokidney product. This fully-implantable kidney innovation is anticipated to reach a development stage milestone by December 31, 2025.
This transaction is exempt from any financial prerequisites and is anticipated to be concluded during the final quarter of 2023, subject to the customary closing conditions. These conditions encompass the requirement for a majority of outstanding Miromatrix common stock shares to be tendered.
Following the successful completion of the tender offer, any remaining Miromatrix shares will be acquired by United Therapeutics in a subsequent merger, with the same terms as the tender offer.
The purchase price to be paid at closing represents a substantial premium of around 170% over the 30-day volume-weighted average trading price of Miromatrix’s common stock, calculated up to October 27, 2023, the day prior to the transaction announcement. The board of directors at Miromatrix unanimously recommends that the company’s shareholders participate in the tender offer.
This transaction provides MIRO shareholders with a notable premium and grants them the opportunity to partake in the potential benefits of this collaboration, all while expediting the advancement of Miromatrix’s product pipeline.
