On March 16, Marrone Bio Innovations Inc. (MBII) along with Bioceres Crop Solutions Corp. (BIOX) announced their merger agreement. Consequently, MBII rebounded and surged up in the premarket today on March 17, 2022.
In the previous trading session on Wednesday, the stock traded in the red with a loss of 8.98%. After fluctuating between a high of $0.8156 and a low of $0.6603, the stock closed the session at $0.7014. The volume of the shares exchanged remained above the average at 1.61 million. Following the announcement, the stock made a comeback in the premarket today. At the time of writing, MBII was up by 30.10% while the volume of shares traded was 374.2K. Thus, at the last check, in the premarket, the stock was trading at a value of $0.9152 per share.
The agriculture-based biological solutions provider, Marrone Bio Innovations Inc. was founded in 2006. Currently, the company has a market capitalization of $136.51 million with its 177.15 million outstanding shares.
MBII’s Merger Agreement
On Wednesday, MBII and Bioceres announced entering into a definitive agreement for combining the companies in an all-stock transaction. As per the terms of the agreement, each MBII common stock share will be exchanged at closing for Bioceres ordinary shares at a ratio of 0.088. This represents a value of $236 million approximately, based on the share prices on March 15’s close. Moreover, the transaction was approved unanimously by the boards of both companies.
The transaction is expected to close in Q3 2022 subject to approval by shareholders and customary closing conditions.
In addition, the company also agreed to terms for a capital commitment in form of a convertible loan (with a principal amount between $37.5 and $45 million).
Upcoming Earnings
As announced on March 08, the company is set to declare its Q4 and fiscal 2021 financial results on March 28, 2022, after the bell. The company will host the earnings conference call at 4:30 pm ET and will also provide a corporate update along with the financial discussion.
MBII’s CFO Transition
On February 22, the company announced that the company’s then CFO Sue Cheung resigned from the company, effective March 9, 2022. Ms. Cheung resigned due to personal reasons. Subsequently, MBII appointed LaDon Johnson, a director with CFO systems, as the interim CFO on a consulting basis. Furthermore, the company stated to have commenced a search for a permanent CFO.
