Superconductor Technologies (SCON) Stock Pops On Merger

Superconductor Technologies SCON Stock News

Superconductor Technologies, Inc. (NASDAQ: SCON) has nearly doubled in the premarket this morning. Investors are excited after the company announced that it has entered into a merger agreement. Here’s what’s going on:

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SCON Stock Heads Up On Merger Agreement

In the press release, Superconductor Technologies said that it signed the merger agreement with Allied Integral United. Allied is a privately held company that works to deliver next generation longevity care and wellness services.

Under the terms of the agreement, a wholly-owned subsidiary of SCON will merge with and into Clearday in a stock-for-stock transaction. Upon the close of the transaction, SCON investors will own about 3.7% of the combined company.

Once the merger is complete, Superconductor Technologies agreed to change its name to Clearday, Inc. The combined company will have a core focus on the development of Clearday’s non-residential daily care service model. It will also continue the work Clearday has done with its Memory Care America residential memory care facilities.

Importantly, SCON  said that Clearday plans to leverage STI’s exisiting Cryogenic Cooler as an enabling technology for one of its service offerings in the home healtcare market. Finally, the company said that no financing is required as part of the deal.

In a statement, Jeff Quiram, President and CEO at SCON, had the following to offer:

Following an assessment of strategic alternatives, our Board of Directors has concluded that a merger with Clearday offers an excellent opportunity to create meaningful value for our stockholders. As we wind down our Conductus® superconducting wire platform, we believe the Clearday transaction has the potential to monetize our cryogenic cooler technology, which was developed as an important part of our overall technology solution.

Why This News Is So Exciting

This merger is a very big deal for Superconductor Technologies and its investors. Through the merger, investors will gain exposure to a large book of services in the healthcare sector.

Ultimately the longevity care sector is one that is growing, and that will likely continue to do so. Through the merger, SCON investors will have exposure to Memory Care America, which is the brand of a network of residential memory care communities across four U.S. states. Moreover, the company is working on a Clearday Clubs concept that will bring the company’s services to daytime-only communities at a dramatically less expensive rate.

At the end of the day, Clearday and Allied Integral United have a strong history in the space that has led to tremendous growth. Now, through the merger, SCON investors will join in that growth.

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