In a recent strategic progress update, NewGenIvf Group Limited (NASDAQ: NIVF) has witnessed a notable surge in its stock price. As of the latest market check, NIVF shares have climbed 24.65%, trading at $1.05 on the US stock charts.
Advancing The Proposed Reverse Merger
NewGenIvf (NIVF) has announced ongoing active evaluations of the proposed reverse merger with COVIRIX Medical Pty Ltd. In order to meet the requirements needed for the Proposed Transaction to close, both firms have thoroughly investigated each other’s businesses and are still making great progress in that direction.
By the end of August 2024, the firms want to have the non-binding term sheet completed for this deal. During the due diligence phase, COVIRIX disclosed that its treasury holds a crypto asset of substantial market value, nearly equivalent to NewGenIvf’s current market capitalization. This asset has the potential to provide significant financing support for COVIRIX’s drug development program.
Concurrently, NewGenIvf has secured a contract with a channel dealer to order a substantial volume of IVF treatments and surrogacy services through the end of 2025. This contract signifies a strong vote of confidence in NewGenIvf’s capabilities and underscores the company’s commitment to maximizing shareholder value through strategic opportunities, including the proposed COVIRIX reverse merger.
Details Of The Proposed Transaction
According to the Term Sheet, NewGenIvf proposes to issue 102,890,000 of its ordinary shares to the shareholders of COVIRIX or their nominees in exchange for a 100% equity interest in COVIRIX, at an implied price of US$6 per share, amounting to a total of US$617,340,000.
Concurrently, COVIRIX intends to raise US$6 million at the same share price for NIVF, in a form agreeable to both parties. Upon stockholder approval of the Proposed Transaction, COVIRIX shareholders are anticipated to hold approximately 85.8% equity interest in NewGenIvf. Additional details regarding the Proposed Transaction will be announced once a definitive agreement is executed.
