Boston, MA 03/25/2014 (wallstreetpr) – The Board of Directors of Corgenix Medical Corporation (OTCMKTS:CONX) announced in the past weeks that it was considering strategic ways to enhance shareholder value in the company. Several options were placed forward, but with the stock winning investor confidence in recent trading, the question might be; is a deal in the offing? We revisit the announcement that the board issued to find answers into this and many other investors concerns.
Share of the company soared to establish a new 52-week high at $0.42 during Monday session. The shares closed the day at $0.396, having gained 13.29 percent. The heavy volume trading day saw an exceedingly high volume of share shifting hands than in a normal session.
Directors and their word
Corgenix Medical Corporation (OTCMKTS:CONX) is involved in the development and marketing of diagnostic test kits, serving worldwide customers. The company is currently not in its best very business position, thanks to slowdown in medical devices spending, competition and high costs and expenses. However, the management said that seeking and enhancing value for shareholders is a priority.
On that note, the management stated that among other alternatives, it would explore joint venture, strategic alliances or sale of the company, whichever present the best value for shareholders.
In a move aimed at walking the talk, the directors of Corgenix Medical Corporation (OTCMKTS:CONX) approved Inverness Advisors to offer financial advice to the company towards settling on the best option. Yet, even as the advisors help the company to understand its financial help as it seeks a transaction, the board was quick to point out that the exploration process being undertaken would not necessary lead into a transaction.
How far so far?
No word has so far come from the board. Remember, they said they will not disclose more details with respect to the process until a specific transaction is approved.
So then, without a word from the board in relation to the deal and the share already getting excited, it cannot be far from the truth that rumors are propel the stock upward.
The company’s CEO Douglas T. Simpson earlier observed that having posted strong financial results, Corgenix Medical Corporation (OTCMKTS:CONX) was best placed for a strategic transaction. That statement left no indication about which directions things are expected to move. Yet, what is clear is that investors are excited that the board is taking its time to ensure that the best value is obtained out of the transaction that will be eventually approved.
