Alliqua Biomedical Inc (NASDAQ: ALQA) is having a great day in the market today, and for good reason. The company released a note from the CEO, providing an update on business operations. Of course, the update was a positive one, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The business update;
- what we’re seeing from ALQA stock as a result; and
- what we’ll be watching for ahead.
ALQA Announces Business Update
As mentioned above, Aliqua Biomedical is having a great day in the market today after the company released a note from the CEO, discussing various business updates. In the note, CEO, Dave Johnson started out by prepping the cround with a statement surrounding recent announcements that have drove an increase in market cap and liquidity over the past couple of months.
Mr. Johnson then pointed to the completion of the sale of its UltraMist Therapy System and other therapeutic ultrasound platforms. He pointed to the idea that the sale gave ALQA further strength in its balance sheet and allowed it to focus its efforts on remaining assets.
He then went on to discuss the merger with Adynxx that was signed in October and the $5.7 million grant recently received by Adynxx. Keeping on the merger and restructure conversation, Mr. Johnson pointed to the spin off of the company’s Aquamed Technologies and merger of the business with TO Pharmaceuticals, a move that will allow it to take advantage of the recently passed Farm Bill.
Finally, the CEO said that the company intends to pay a special dividend to shareholders in the range of $1.00 to $1.20 once it has satisfied transaction expenses related to the restructuring as well as other financial commitments. It is expected that the record date will be just before the close of the merger with Adynxx and the dividend will be paid within 30 days following the close of the transaction. The CEO at ALQA ended the conversation with a strong statement. Here’s what he had to offer:
Yes, we have been busy at Alliqua with one goal in mind: maximizing shareholder value. As an Alliqua shareholder, if both transactions close as planned, you will have equity in two exciting companies and of course will be entitled to receive the intended cash dividend.
Thanks for your interest in Alliqua Biomedical.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Alliqua Biomedical, the news proved to be overwhelmingly positive. With the note from the CEO of the company, investors were reminded of two highly accretive transactions that should close relatively soon. Moreover, they were informed that they will receive an immediate return of value by way of special dividend upon the closing of these transactions. So, it’s not surprising to see that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:11), ALQA is trading at $2.37 per share after a gain of $0.38 per share or 19.10% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on ALQA. In particular, we’re interested in following the story surrounding the mergers and restructuring work that the company has clearly been busy with and the fruits of these changes as the two important transactions come to a close. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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