Applied UV skyrockets 559% after acquisition of Airocide system assets from Akida
- Applied UV's stock skyrocketed on Tuesday after the company announced it acquired the right to Akida's Airocide system.
- The system kills airborne pathogens using
UVC lightand a proprietary titanium dioxide-based photocatalyst.
- The market for UV light systems has exploded throughout the pandemic.
Shares of Applied UV skyrocketed as much as 559% on Tuesday after the company announced it closed a deal to acquire the intellectual property and assets of Airocide system manufacturer Akida.
The deal will see Applied UV give up 1.375 million shares of stock and $901,000 in cash to acquire "all of the assets of Akida Holdings, including rights to manufacture and sell the Airocide System."
However, the deal won't result in Applied UV assuming any long-term debt or non-operating liabilities from the company, whose fiscal year 2020 revenue is estimated to be $4.7 million with EBITDA of roughly $921K.
The Airocide system, which is trademarked by Akida, was originally developed for NASA by the University of Wisconsin. The system uses a patented combination of UVC light and a proprietary titanium dioxide-based photocatalyst to kill airborne pathogens.
Airocide products have seen broad adoption across all major
"The last year demonstrated more than ever the importance of innovative and comprehensive infection control solutions that protect healthcare providers, patients, and the general public," said Keyoumars Saeed, CEO of Applied UV.
Applied UV has been distributing Akida's Airocide system over the last year. CEO Keyoumars Saeed said acquiring the company's assets is a "natural complement and extension to Applied UV's product and service offerings, global reach, and customers."
The move by Applied UV continues a whirlwind year at the company. The firm went public in August of 2020 with an IPO that raised just $5 million.
Then the company's stock quickly took off, hitting highs of almost $20 per share before a rapid drop came, sending share prices back to the $4-$7 range where they stayed until Tuesday's announcement.
Applied UV boasts a market cap of $232 million as of 2:50 PM E.T. on Tuesday, with shares trading at $29.50.
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