FONAR Corporation Investigated for $19 Per Share Sale to CEO Affiliates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Businesswire
- Transaction Investigation: Former Louisiana Attorney General Charles C. Foti and his law firm Kahn Swick & Foti are investigating FONAR Corporation's proposed sale to CEO Timothy Damadian's affiliates for $19 per share, aiming to assess whether this valuation adequately reflects the company's worth.
- Shareholder Rights Concern: Under the proposed terms, FONAR shareholders would receive $19 per share for common and Class B stock, and $6.34 for Class C stock, with the law firm seeking to ensure that shareholders receive fair compensation in the transaction.
- Legal Consultation Opportunity: KSF is inviting shareholders who believe the transaction undervalues the company to reach out for no-obligation legal consultations, highlighting the importance of shareholder rights and the potential for legal action.
- Market Reaction Anticipation: This investigation may impact market confidence in FONAR, particularly if the transaction price is perceived as unfair, potentially leading to a decline in shareholder trust in the company's management.
FONR
$18.6+Infinity%1D
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About FONR
FONAR Corporation is engaged in the research, development, production and marketing of medical scanning equipment, which uses principles of Magnetic Resonance Imaging (MRI) for the detection and diagnosis of human diseases. The Company conducts its business in two segments: medical equipment, and physician management and diagnostic services. Its medical equipment segment is conducted directly through the Company. Its physician management and diagnostic services segment is conducted through its subsidiary, Health Management Corporation of America (HMCA). Its signature product is the FONAR UPRIGHT Multi-Position MRI (STAND-UP MRI). HMCA provides management services, administrative services, billing and collection services, compliance consulting, purchasing, information technology (IT) services, repair, maintenance service, and clerical and other non-medical personnel to medical providers engaged in diagnostic imaging. HMCA owns and operates six diagnostic imaging facilities in Florida.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
