Benzinga's Microcap Movers for Tuesday July 3, 2012
Below are highlights from Benzinga's daily coverage of small cap and microcap securities making big moves:
Shares of Verso Paper (NYSE: VRS), the Memphis, TN paper company, rose 47.86% Tuesday on 17 times the average daily volume.
Verso Paper announced late Monday that it has held discussions with certain holders of the 11.375% first-lien senior secured notes of NewPage Corporation in an effort to achieve a potential business combination involving Verso and NewPage as part of a consensual plan of reorganization in NewPage's Chapter 11 bankruptcy proceedings.
The terms of Verso's proposed transaction would provide NewPage's first-lien noteholders with $1.425 billion of value, consisting of $1.075 billion of new Verso first-lien notes, $150 million of Verso common stock, and $200 million of cash. In addition, the proposed transaction would include a 100% recovery in cash to repay NewPage's debtor-in-possession financing, a 100% recovery in cash for the allowed priority and administrative claims in the bankruptcy proceedings, a to-be-determined amount of Verso common stock for the holders of NewPage's second-lien notes, and a to-be-determined recovery for NewPage's unsecured creditors.
To facilitate the transaction, a $200 million cash equity investment in Verso was contemplated. The proposed transaction would be subject to customary conditions, including the satisfactory completion of due diligence and the completion of antitrust review.
Verso Paper closed at $1.73 on Tuesday.
Shares of MediciNova (NASDAQ: MNOV), the San Diego, CA biopharmaceutical company, rose 25.00% Tuesday on average volume.
MediciNova announced Monday that an End-of-Phase 2 meeting pertaining to the development of MN-221 for the treatment of acute exacerbations of asthma has been scheduled with the United States Food and Drug Administration.
The Division of Pulmonary, Allergy, and Rheumatology Products of the FDA reviewed MediciNova's meeting request submission and granted an End-of-Phase 2 meeting scheduled for October 22, 2012. In advance of the meeting, MediciNova will provide DPARP with a MN-221 briefing package including the recent Phase 2 trial outcomes and the company's proposed pivotal trials and additional development plans.
MediciNova closed at $2.05 on Tuesday.
Christopher & Banks
Shares of Christopher & Banks (NYSE: CBK), the Plymouth, MN women's apparel retailer, rose 19.83% Tuesday on 1.5 times the average daily volume.
Christopher & Banks acknowledged receipt of a letter Tuesday from Aria Partners indicating its interest in acquiring all outstanding stock of the Company for $1.75 per share.
Consistent with its fiduciary responsibilities, the Company's Board of Directors will review and consider this unsolicited proposal, in consultation with its financial and legal advisors, and determine the course of action that it believes to be in the best interests of Christopher & Banks and its stockholders, and communicate any such conclusion to its stockholders. Piper Jaffray & Co. and Dorsey & Whitney LLP have been retained as financial and legal advisors, respectively, to assist the Board in its evaluation of the proposal.
Christopher & Banks stockholders are advised to take no action at this time pending the review of the proposal by Christopher & Banks' Board of Directors.
Christopher & Banks closed at $1.39 on Tuesday.
The information in this article is taken from public sources, press releases, and websites that cannot always be verified. Please note that investing in microcap stocks is highly speculative. The companies mentioned here are for information purposes only. Benzinga makes no claim as to the suitability of these stocks as an investment. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
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