The announcement of a special cash dividend has resulted in a notable increase in the stock value of ARCA biopharma, Inc. (NASDAQ: ABIO). The stock price of ABIO has increased by 22.64% to $3.62 as of the latest current data.
Declared Special Dividend in the Context of a Merger
ARCA biopharma’s Board of Directors has announced a special cash dividend in advance of the business’s impending merger with Oruka Therapeutics, Inc. This statement complies with the conditions of the April 3, 2024, Agreement and Plan of Merger and Reorganization.
The dividend is scheduled to be paid to stockholders on file as of August 26, 2024, and is anticipated to be worth $1.59 per share of ARCA’s common stock. The ultimate sum, however, might change depending on the company’s financial situation prior to the merger closing. This payment, which is scheduled for August 28, 2024, is an indication of ARCA’s dedication to preserving shareholder wealth throughout this change.
Merger and Dividend Approval
Distribution of the special dividend is contingent to investor approval of ARCA Biopharma’s merger with Oruka Therapeutics. Voting by shareholders will take place in a special meeting on August 22, 2024. The deal is anticipated to close on August 29, 2024, if the merger receives the required approval and all requirements specified in the Merger Agreement are fulfilled.
Legacy Asset Disposition
ARCA Biopharma intends to sell up its intellectual property and legacy technologies as part of the merger process. These include assets connected to Gencaro (bucindolol hydrochloride) and the Recombinant Nematode Anticoagulant Protein c2 (rNAPc2). This divestment is expected to happen right before or in conjunction with the merger completion, and it is dependent on shareholder approval of the merger.
The special dividend and asset sale are just two of ARCA Biopharma’s strategic moves that highlight the company’s goals of streamlining operations and increasing shareholder returns in the run-up to its merger with Oruka Therapeutics.
