Rubicon Technology, Inc. (NASDAQ: RBCN) is a provider of monocrystalline sapphire for use in optical and industrial applications across North America and Asia. Shares of the semiconductor materials company are rallying 65% through early trading on Tuesday, July 5, 2022. Over the past three months, Rubicon Technology has seen average daily volume of 4,060 shares. However, volume of 3.77 million shares or dollar volume of around $56.66 million, has already exchanged hands through early trading.
Shares of Rubicon Technology are soaring after the company announced that it has entered into a definitive Stock Purchase and Sale Agreement with Janel Corporation. Under the terms of the agreement, Janel will launch a cash tender offer to purchase up to 45% of Rubicon’s total outstanding shares at a price per share of $20.00. The offer represents a 120% premium compared to Rubicon’s close on July 1, 2022.
Upon completion of the tender offer, Rubicon Technology will make a cash distribution of $11.00 per share to its shareholders. In addition, two Rubicon directors will resign so that Janel can pick two individuals to take their place. Rubicon says it also plans to voluntarily delist from the NASDAQ stock exchange.
The tender offer is estimated to begin within the next ten business days. Closing of the offer will be 30 days after the beginning of the agreement.
“After careful and thorough analysis, together with the advice of our advisors, the Board has endorsed this transaction as being in the best interest of Rubicon’s stockholders,” said Timothy E. Brog, the Company’s Chief Executive Officer. “We are pleased that the combined tender offer and subsequent distribution of cash to our stockholders will provide stockholders a significant premium to the current market price, while also enabling investors to retain equity in the Company and participate in its future direction.”
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