Asensus Surgical, Inc. (ASXC) announced on Wednesday that it has entered into a non-binding letter of intent with medical technology company Karl Storz SE & Co. KG regarding the company's potential acquisition at a purchase price of $0.35 per share in cash.
Under the agreement, Asensus would not engage in acquisition negotiations with any other party for a period of up to ten weeks, during which a merger agreement with Karl Storz is expected to be finalized.
The medical device company said that it would receive a bridge loan of $20 million from Karl Storz to meet immediate financial obligations during the exclusivity period.
Asensus also stated that it has formed a transaction committee of the Board of Directors to consider the terms of the merger agreement.
Currently, Asensus's stock is gaining 29.80 percent, to $0.277 on the New York Stock Exchange.
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