- The stock price of Applied UV Inc (NASDAQ: AUVI) is trading at over 60% pre-market. This is why it happened.
The stock price of Applied UV Inc (NASDAQ: AUVI) — an infection control technology company that applies the power of narrow-range ultraviolet light to destroy pathogens safely, thoroughly, and automatically — is trading at over 60% pre-market as of 8:19 AM ET. Investors appear to be responding to Applied UV announcing it has closed on the acquisition by its wholly-owned subsidiary SteriLumen of substantially all of the assets of Akida Holdings LLC, including all of the rights to manufacture and sell the Airocide System of patented air disinfection and purification technologies for 1.375 million common shares of Applied UV stock and $901,274.96 in cash.
Neither SteriLumen nor Applied UV will assume any long-term debt or non-operating liabilities of Akida. And Airocide products have seen broad adoption across all major markets including resorts and hotels, hospitals and nursing homes, food distribution and wine making commercial buildings, and retail sectors. Akida’s revenue for the full calendar year 2020 is estimated to be $4.7 million with EBITDA of approximately $921,000. And the agreement has been unanimously approved by the Boards of Directors of both companies.
The Airocide system (originally developed for NASA by the University of Wisconsin) is a medical-grade, airborne pathogen killing technology that uses a patented combination of UVC and a proprietary titanium dioxide based photocatalyst. And the Airocide system is clinically proven and field tested to kill/remove/eliminate airborne pathogenic and non-pathogenic microorganisms, allergens, odors, and harmful organic compounds in a variety of applications and industries including healthcare, hospitality, grocery chains, wine making facilities, commercial real estate, schools, dental offices, cannabis, and homes.
“The last year demonstrated more than ever the importance of innovative and comprehensive infection control solutions that protect healthcare providers, patients, and the general public. Since establishing a distribution agreement with Airocide last year, our appreciation has only grown for its capabilities; they represent a natural complement and extension to Applied UV’s product and service offerings, global reach, and customers. Our companies share a similar focus on infection control across a range of healthcare, hospitality, and commercial customers. Combined, we will offer a broader set of customers a more diversified selection of infection control products and services. We welcome the people of Airocide to the Applied UV team and firmly believe that together, we will create greater value for our customers and shareholders.”
— Q Saeed, CEO of Applied UV
“We are pleased to reach this agreement with SteriLumen and Applied UV. We believe the value opportunity is compelling, both today and in a post-COVID world, as the combined company will have the scale, breadth, and depth to unlock substantial value that will drive further benefits for shareholders, customers, and all stakeholders. We look forward to working collaboratively to bring our two organizations together.”
— Keith Frein, President of Akida
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.