12th Nov 2021 06:51
ProPhotonix Ltd - New Hampshire, US-based manufacturer of LED illumination systems - Agrees to takeover by Exaktera LLC, which was created by Boston, US-based private equity firm Union Park Capital. Union Park to buy ProPhotonix for USD11.6 million in cash. Deal will be put to shareholders at a meeting on December 15.
"The ProPhotonix board of directors unanimously approved the merger agreement and has recommended that the stockholders vote in favour of adoption of the merger agreement," company says. "Holders of company common stock will be entitled to receive an acquisition price that provides liquidity from an otherwise thinly traded stock and as compared to the uncertain future long-term value to stockholders that might or might not be realized if we remained independent - or if we were sold in a stock deal and the stockholders received stock of the purchaser or the combined companies as the acquisition price."
Notes company also faces difficulty raising additional financing and would therefore has "limited growth opportunities and limited resources to operate the business".
Current stock price: 7.73 pence; up 37% on Thursday
Year-to-date change: up 14%
By Paul McGowan; [email protected]
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