Realm Therapeutics plc (NASDAQ: RLM) is having a great start to the trading session in the market this morning, and for good reason. The company provided an update with regard to its potential sale and strategic review. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The update;
- what we’re seeing from RLM stock as a result; and
- what we’ll be watching for ahead.
RLM Announces Strategic Update
As mentioned above, Realm Therapeutics is having an incredibly strong start to the trading session today after the company announced an update. In a press release, the company provided an update on the timing of the ongoing formal sale process as part of a previously announced strategic review. This review was announced on September 17th.
In the release, RLM said that it has received multiple indications of interest. The interest comes surrounding multiple options, including both the sale of the company and a potential reverse merger. The company said that it has received several non-binding proposals and has selected a short list of transactions. As such, it has advanced these to deal negotiation and due diligence stages and expects to provide investors with another update in the first quarter of 2019.
In the release, RLM said that it is also considering the separate sale of its HOCI-related assets. These assets include the Vashe royalty stream, the anti-itch hydrogel and the company’s HOCI-related intellectual property and other assets. In the release, the company said that it is in advanced negotiations with regard to the sale of these assets and will be updating investors on this process in early 2019.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Realm Therapeutics, the news proved to be overwhelmingly positive. After all, if the company does sell itself, it will likely do so at a strong premium. So, with several proposed offers and advanced negotiations revolving around its HOCI assets, investors are seeing an opportunity. So, it’s not surprising to see that these investors are reacting by pushing the stock upward. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:53), RLM is trading at $3.70 per share after a gain of $1.11 per share or 42.86% 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 RLM. In particular, we’re interested in following the story surrounding the company’s continued work to move forward with the best option for its shareholders. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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