Polydex Pharmaceuticals Limited (OTCMKTS:POLXF) Stock Soars 205%: Here is Why

On Thursday, Polydex Pharmaceuticals Limited (OTCMKTS:POLXF) was in focus after it provided a major new update. The company announced that it went into a Plan of Arrangement agreement by way of which BioSpectra Inc and BioSpectra Canada Ltd would pick up all the outstanding common as well as preferred shares in Polydex.

Trading Data

On Thursday, POLXF stock moved up 205.36% to $1.7100 with 315.44K shares, compared to its average volume 5.56K shares. The stock moved within a range of $0.5911 – 1.8800 after opening trade at $0.6162.

Polydex Pharmaceuticals Limited and BioSpectra Inc. Announce Business Combination

The transaction is worth $6,940,000. Out of that amount, $6,924,980.02 would be paid in the form of outstanding common shares while $15,019.08 would be paid in the form of 899,040 Class B outstanding preferred shares. The price for each common share came in at $2.017.

As per the arrangement between the two parties, the transaction would go into effect as per the statutory plan of arrangement as laid down in Section 182 of the Ontario Business Corporations Act. As per the arrangement, each outstanding and issued share in Polydex would be deemed transferred to BioSpectra by each shareholder in the former.

In addition to that, it ought to be noted that the Board of Directors of Polydex had also received a fairness opinion regarding the transaction from Evans & Evans Inc, which is an independent consultant focussed on providing business valuations.