VRAY stock is flying in Tuesday’s trading session after ViewRay, Inc. (NASDAQ:VRAY) reached a non-binding memorandum of understanding (MOU) with Elekta AB (OTCPK:EKTAY).
Big News
In a new development that should come as a massive boost for shareholders of ViewRay, the company announced that it has agreed to a landmark deal with Elekta AB. The company announced that it has signed a memorandum of understanding (MOU) with Elekta by way of which the two companies will work towards expanding the use and knowledge of MR-guided radiation therapy.
The MOU is non-binding in nature, but the more important development is the fact that Elekta has also agreed to invest in ViewRay as part of this deal. It has been revealed that Elekta has picked up a 9.9% stake in ViewRay. Hence, the remarkable rally in VRAY stock must not have come as a surprise to many.
However, that is not all. ViewRay has signed a similar non-binding MOU with Medtronic. By way of that particular agreement, the two companies are going to collaborate on a matter of clinical importance. They are going to find out the possible benefits of MRIdian MR-guided radiation therapy system. Like Elekta, Medtronic has also picked up a minority stake in ViewRay.
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VRAY stock soared by as much as 34% to $4.56 as more and more investors piled on to the stock.
The Chief Executive Officer and President of ViewRay, Scott Drake, spoke about these deals and highlighted the company’s goals from these collaborations: “We are pleased to announce these important collaborations and investments in ViewRay. Our goal is to concurrently prove the value of MR-guided radiation therapy and strengthen our balance sheet.”
While the signing of these non-binding MOUs is certainly a major development, it should be noted that these deals will ultimately depend on the possibility of the company raising a certain amount from a public offering. It has been revealed that ViewRay must raise at least $75 million from the public offering if the two companies are to invest in it.
Despite today’s big jump, VRAY stock is still down 25% year-to-date.
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