Sharps Compliance Corp. (NASDAQ: SMED) is engaged as a healthcare business-to-business service provider that offers comprehensive waste management solutions for regulated medical waste, hazardous waste and unused medicines. Shares of the medical waste management company are skyrocketing 194% through early trading on Tuesday, July 12, 2022. Over the past three months, Sharps Compliance has seen average daily volume of 204,680 shares. However, volume of 2.03 million shares or dollar volume of around $17.01 million, has already exchanged hands through early trading.
Shares of Sharps Compliance are soaring after the company announced it has entered into a definitive merger agreement with an affiliate of Aurora Capital Partners, a middle-market private equity firm. Under the terms of the agreement, Sharps Compliance will have all its outstanding shares acquired at a price per share of $8.75, which represents a premium of 207% compared to Sharps’ closing price on July 11, 2022.
The transaction is subject to regulatory approval, but management estimates the deal to close sometime during the third quarter of 2022. Once closed, Sharps Compliance will delist from the NASDAQ stock exchange and become a privately-held company.
Pat Mulloy, President and Chief Executive Officer of Sharps Compliance: “Sharps is a leading provider of comprehensive solutions for the small to medium generators of medical, hazardous and pharmaceutical waste. To date, the Company has developed a tremendous customer base by offering route-based and mailback medical waste disposal services and we believe there is significant runway for increasing the market penetration for our MedSafe solution for the safe and compliant disposal of unused medications including controlled substances. In addition to delivering immediate value to our shareholders, this transaction provides Sharps with a long-term partner that is focused on building upon our strong platform.”
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