NewGenIvf Stock Moves Higher on Potential Reverse Merger Announcement
NewGenIvf (NIVF) shares popped higher after the company announced the execution of a non-binding term sheet regarding a proposed reverse merger with healthcare company European Wellness Investment Holdings Limited (“EWIHL”).
The proposed reverse merger will bolster our position in several key ways. Operationally, it will unlock significant synergies, expand our global reach, and help us to further improve fertility outcomes for our customers. Financially, with the acquisition of a profitable business and a US$30 million fundraising, we will be well-equipped to fund our future growth. Moreover, the issuance of additional ordinary shares will increase our market capitalization, ensuring higher trading liquidity.
Mr. Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen
Alfred also said he believes the deemed price of $5 per share confirms that NewGenIvf’s current share price is undervalued compared to the long-term fair valuation of the company.
Pursuant to the term sheet, it is proposed that NewGen issue 53,600,000 of its ordinary shares to the shareholder(s) of EWIHL or its associate in exchange for 100% equity interest of EWIHL, at a deemed price per share of $5, representing an aggregate amount of $268,000,000. Simultaneously, it is proposed that NewGen raise US$30 million from public or private shareholders, in a form mutually acceptable to both NewGen and EWIHL.
NewGenIvf shares traded 62.3% higher to $1.23 per share on increased volume following the news item.
