Why Is Robotic Surgery-Focused Penny Stock Asensus Surgical Trading Higher On Friday?

Zinger Key Points
  • The transaction would strengthen KARL STORZ's position in the robotic surgical market.
  • The transaction is anticipated to close during the third quarter of 2024.

On Friday, KARL STORZ Endoscopy-America, Inc. agreed to acquire Asensus Surgical Inc. ASXC for $0.35 per share in cash.

KARL STORZ is a wholly-owned direct subsidiary of KARL STORZ SE & Co. KG, an independent, family-owned global medical technology company based in Germany.

The purchase price represents a premium of approximately 67% based on the per-share closing price of the Asensus common stock on the NYSE American on April 2 and a premium of approximately 52% to the closing price of the common stock on the last trading day prior to the date of this announcement.

In April, Asensus entered into a non-binding letter of intent with KARL STORZ to engage in diligence and negotiations.

Asensus’ Board has unanimously approved the transaction of Directors.

The transaction would enhance KARL STORZ’s portfolio and market presence, strengthening KARL STORZ’s position in the robotic surgical market, particularly with the development of the next-generation LUNA system.

The transaction is anticipated to close during the third quarter of 2024.

Upon completion of the transaction, Asensus Surgical will become a subsidiary of KARL STORZ Endoscopy-America and no longer be publicly listed or traded on the NYSE American Exchange.

In April, Asensus secured a loan of up to $20 million from KARL STORZ to support operations during the exclusivity period and potential transaction process.

This loan will provide up to $10 million of liquidity during exclusivity. The medical device company said that if a definitive merger agreement is successfully negotiated and executed, additional funding in an aggregate amount of up to $10 million will be available under the loan.

Asensus generated first-quarter 2024 revenues of $1.1 million.

Price Action: ASXC shares are up 41.40% at $0.33 at the last check on Friday.

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