OASM stock jumped nearly 100% Friday, instantly becoming a trending ticker of the day. And the surge began after Oasmia Pharmaceutical (NASDAQ:OASM) said it reached an agreement with Arwidsro, its largest shareholder.
Here’s what we know.
OASM Stock Goes Flying Over Agreement News
On Friday, July 5, an agreement was made between Oasmia and Arwidsro. The news came out at the start of the trading day that Jörgen Olsson, the independent Chairman of Oasmia, held discussions on behalf of OASM, solving earlier disputes about unclear balances. For those who don’t know, Oasmia Pharmaceutical is a Sweden-based company that develops and manufactures new generations of drugs. It specifically caters to the fields of human and veterinary oncology.
There are several sides to the agreement, but essentially, Oasmia has agreed on the early fulfillment of Arwidsro’s financing obligation of SEK 75 million. This fulfillment was issued in January of last year; it was intended to resolve balance sheet issues. Further details on the agreement can be found here. An important takeaway, however, is that these tractions will cause Oasmia’s liabilities to decrease by SEK 60 million; equity will increase by SEK 95 million.
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“It feels good to straighten out some historical question marks and close further parts of our review by fulfilling past agreements,” said Jörgen Olsson. “In addition, getting SEK 20 million to reduce our debt burden is very positive.”
Chairman of Arwidsro, Per Arwidsson, seems to agree with Olsson, saying it’s been a long journey, but it’s “led to something very positive.”
And positive it has. According to Yahoo Finance, as of 1:59 PM EDT, OASM stock is trading at $2.16; this means OASM stock is up 75.60%.
Takeaway
What do you think about Oasmia Pharmaceutical coming to an agreement with Arwidsro? Do you think OASM stock deserved to jump nearly 100%?
Let us know your thoughts in the comments below!
Featured image: PixaBay
