Looking at the chart for Ophthalmic Imaging Systems (OTC:OISI), it seems there might have been some rumors or leaks of the upcoming news about the merger.
Yesterday, the official news was released and OISI gapped up. Even though it closed lower than it opened, OISI did get a 2.35% gain with the close at $0.87. The volume was impressive reaching 1.4 million shares for the session.[BANNER]
Apparently, the NASDAQ traded Merge Healthcare has signed a definitive merger agreement to acquire OISI. Shareholders of OISI are to receive a 0.1693 share of Merge Healthcare common stock for each OISI share.
The merger, which of course depends on some customary closing conditions and a Fairness Hearing, is supposed to close at some time during the third quarter of the year.
While the news seems to be welcomed by OISI shareholders, Merge Healthcare stock took a hit on the news. With a little short of 1.3 million shares traded, Merge dropped 5.83% to $5.33 per share.
Apart from the obvious dilution that comes with the merger, the financial state of OISI may not be the most attractive. The latest quarterly report suggests the company was able to cover it’s current liabilities, but only barely. The parts that could raise some concern are the loss from operations and the warrants.
At any rate, the news was good for OISI shareholders, and if the merger goes through, they will get some value from their investments.
