Shares of NeuroMetrix, Inc. (NURO) are up by 6.90% at $4.03 in after-hours trading, following the announcement of a definitive merger agreement with electroCore, Inc. (ECOR), a bioelectronic medicine and wellness company.
Under the agreement, a subsidiary of electroCore will acquire NeuroMetrix, with the transaction expected to close by the end of the first quarter of 2025.
NeuroMetrix shareholders will receive the equivalent of the company's net cash balance at closing, estimated to be around $9 million, subject to adjustments.
Additionally, shareholders will receive Contingent Value Rights (CVRs), entitling them to future proceeds from the divestiture of NeuroMetrix's DPNCheck platform and royalties from prescription Quell products, up to $0.5 million.
"We are pleased to announce this transaction, which provides a return of balance sheet cash to shareholders while offering potential upside through the CVR," said Shai N. Gozani, CEO of NeuroMetrix.
Brian V. Hayes, CEO of electroCore, stated, "We are excited about integrating NeuroMetrix's innovative products, which will expand access to Quell technology and support our growth in the bioelectronic medicine space."
NeuroMetrix closed Tuesday's (Dec. 17, 2024) trading at $3.77, down 0.26%. In after-hours trading, the stock was up by 6.90% at $4.03.
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