Synergy Pharmaceuticals Moving On Recent Merger And Acquisition Deals
On August 13th, shares of Synergy Pharmaceuticals (SGYP) hit an intra-day low of $3.66 before closing the day at $3.74. Now, just two weeks later, shares routinely trade for a buck higher while volume has modestly increased, too. The quick price spike in itself could certainly attract the attention of investors looking for a nice momentum play or trading opportunity, but the company has enough pending catalysts and developing stories in play to justify the recent price increases, and potentially more.
Synergy had initially moved higher during the dog days of summer after a strength with Callisto Pharmaceuticals (CLSP) was announced in late July. The merger put Synergy in a position of strength in its quest to attract a more committed investor because - as a result of the deal - Callisto's previously-held for percent stake in SGYP will be cancelled and distributed evenly amongst Callisto investors. Many large funds and institutions are hesitant to buy into a company already forty percent owned by another entity. The merger agreement alleviated this roadblock.
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