Why Sesen Bio Shares Are Skyrocketing Friday?

Sesen Bio Inc SESN shares are trading higher by 16.81% to $0.59 Friday morning after the company and Carisma Therapeutics announced an increased special dividend of $70 million, or $0.34 per share, in connection with the pending merger.

What Else?

Sesen Bio says the one-time special cash dividend expected to be paid to Sesen Bio stockholders will be increased to approximately $70 million, or approximately $0.34 per share, representing the amount of excess cash available after Sesen Bio meets a required net cash minimum of $75 million and represents an increase from the previously stated up to $25 million special cash dividend, or up to $0.12 per share.

Carisma's previously announced approximately $30 million financing remains committed and is expected to close concurrently with the merger.

See Also: US Stocks Stare At More Losses In Final Trading Session Of A Dismal Year — Analyst Sees Further Weakness Ahead

Dr. Thomas Cannell, President and Chief Executive Officer of Sesen Bio, said in a statement: "Since first announcing the merger, both companies have engaged extensively with Sesen Bio stockholders and continued to explore ways to deliver greater value in connection with the closing. The $45 million increase to the expected special cash dividend delivers even more direct and immediate cash value."

According to data from Benzinga Pro, Sesen Bio has a 52-week high of $0.96 and a 52-week low of $0.36.