Yesterday CGCP closed the session at $0.448 with a minor increase in the share price and on the second largest trading volume in its history of 3.77 million shares traded. That price almost equals the cash price per share that the announced acquirer has offered for the stock of CardioGenesis and further appreciation may not be possible at this point. According to the corresponding SEC filing and the number of shares that CGCP has as of end February 2011, the company is to be acquired for a total consideration of $21.3 million.
The first doubts about the fair value of the company have also been announced already. Yesterday a law firm said that it is initiating an investigation against CardioGenesis Board of Directors for possible violations of state law in connection with the sale of the company. In particular, the investigations concern whether the offered price is not under the fair value of the business as there is at least one analyst that has given a price target of $6 per share of the stock.
CardioGenesis share price could still experience some fluctuations over the next two weeks though, as the company’s SEC filing states that the “Go-Shop Period” should end up on April 17, 2011. Up to that date CGCP may initiate or encourage publicly or otherwise alternative acquisition proposals from other interested parties, as well as provide non-public information to the market. Thus, theoretically there is a chance to get a better offer for the stock.
