Roka Bioscience Inc (ROKA) Shares Skyrocket – Here’s Why
It’s a very rewarding trading day for investors in Roka Bioscience Inc (NASDAQ:ROKA) with shares up nearly 140%, making the stock Wall Street’s bull of the day. The reason? Shares are skyrocketing following a new SEC filing that reveals Edward Painter — AJA Pharmaceuticals CEO — has taken a nearly 7% stake in the molecular diagnostics firm.
In the filing, Painter provided a good reason for the move: “…the intention of seeking a business combination with A2A Pharmaceuticals.”
Mr. Edward Painter, MBA, co-founded A2A Pharmaceuticals, Inc. in 2016. Previously, Mr. Painter has been the Head of Communications and Investor Relations at KaloBios Pharmaceuticals, Inc. since December 3, 2015. Mr. Painter serves as the Head of Communications and Investor Relations at Turing Pharmaceuticals LLC. He is the Founder of Atoms 2 Applications, LLC. He has 30 years of experience in finance. He served as Vice President at UBS, Oppenheimer & Co., Credit Suisse and Kidder Peabody.
In August, Roka announced that it has entered into an asset purchase agreement with Rokabio, a newly formed, wholly-owned subsidiary of Institute for Environmental Health, Inc. (“IEH”), for the sale of substantially all of the assets of Roka Bioscience in an all-cash transaction for an aggregate purchase price of $17.5 million. IEH’s focus is to provide comprehensive risk management services to the food industry. The closing of the transactions contemplated by the asset purchase agreement is subject to certain customary conditions, including the receipt of consent of Roka Bioscience’s lender and approval by the stockholders of Roka Bioscience of the transactions contemplated by the asset purchase agreement. As part of the transaction, Roka Bioscience will be required to make a $2.5 million milestone payment pursuant to its license agreement. The asset sale is the initial step in a contemplated liquidation of Roka Bioscience.
Roka Bioscience molecular diagnostics company which focuses on providing advanced testing solutions for the detection of foodborne pathogens. Its products include atlas system, atlas listeria detection assay and atlas salmonella detection assay. The company was founded by Paul G. Thomas in September 2009 and is headquartered in Warren, NJ.