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Rubicon Tech Surges 65% As Janel Launches Tender Offer To Buy 45% Stake For $20 A Share

Shares of Rubicon Technology, Inc. (RBCN) are surging nearly 65% on Tuesday morning after Janel Corp. launched a tender offer to buy a 45% interest in the optical systems company for $20.00 per share.

RBCN is currently trading at $14.91, up $5.85 or 64.59%, on the Nasdaq, on a volume of 3 million shares, above average volume of 3 thousand. The stock opened its trading at $15.32 after closing previous trading day at $9.06.

Rubicon Technology said it has entered into a sale agreement with Janel, pursuant to which Janel will commence a cash tender offer to purchase up to 45% of Rubicon's common stock at $20.00 per share.

The offer price represents about 120% premium to the company's closing stock price on the NASDAQ of $9.10 on July 1, 2022. The sale agreement and the transactions contemplated thereby have been unanimously approved by the board of directors of both companies.

Upon completion of the tender offer, Rubicon will distribute cash in the amount of $11 per share to the company's stockholders.

Upon closing of the tender offer, two of company's current directors will resign and Janel will have the right to select two individuals to fill the vacancies created by the resignations.

"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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