Small Cap Losers: ADTN, XXII, ABSI
1:47 pm Monday, August 30th, 2021
ADTRAN, Inc. (NASDAQ: ADTN) and ADVA (ADVOF) entered into an all-stock business combination agreement to create a global, scaled provider of end-to-end fiber networking solutions. Each ADVA share will be exchanged for 0.8244 shares of common stock in a newly created holding company. Co’s shareholders will own approx. 54% of the equity of the combined company. The companies expect to realize approx. $52 mln in pre-tax annual cost synergies realized within two years post-closing. Pulls back from recent multi-year highs. The stock is now down 14% to $21.12.
22nd Century Group Inc (NASDAQ: XXII) announced its entrance into the global specialty hops market. Co intends to establish a subsidiary in the Netherlands to open new revenue opportunities in hops while serving its tobacco and hemp/cannabis franchises. Co, advancing programs with established hops producers and beer developers, among others, is approx. six months into its initial hops two-year development cycle and expects monetization of hop plant varieties and IP with upfront license fees in 12-18 months.
Absci Corp (NASDAQ: ABSI): The July IPO falls to new record lows; the stock now trades with gains of approx. +10% vs its IPO pricing point of $16 after reaching highs above $31 earlier this month. Absci Corporation, an AI-powered synthetic biology company, offers biologic drug candidates and production cell lines using integrated drug creation platform for partners in the United States. Its integrated drug creation platform enables the creation of biologics by unifying the drug discovery and cell line development processes into one process. The company was founded in 2011 and is headquartered in Vancouver, Washington.
