Why Is EVFM Stock Surging Today?

Impressive Surge:
$Evofem Biosciences (EVFM.US)$ stock experienced a significant surge, doubling its value today, catching attention in the micro-cap stocks category. Despite its niche focus on women's health products, EVFM's long-term chart has been unimpressive, trending towards zero.

Market Capitalization and Acquisition Offer:
The company currently trades at a market capitalization of only $1.4 million. Surprisingly, Evofem received an acquisition offer from $Aditxt (ADTX.US)$ valued at around $100 million, inclusive of debt. However, the exact benefit to existing shareholders remains unclear.

Financial Struggles and Acquisition Deal:
Evofem, facing financial challenges, disclosed that the $100 million transaction would eliminate its senior secured debt. Additionally, it includes a $3 million loan to cover legal costs related to the deal. The stock's recent surge is seen as a response to the acquisition offer.

Stock Conversion and Valuation:
Details of the deal indicate that all existing EVFM shares will be converted to 610,000 shares of ADTX stock upon closing, valuing Evofem at around $4 million. This potential undervaluation is a driving factor behind the surge in EVFM stock today.

Investor Considerations:
Despite the surge, investors face the challenge of determining how much of the $100 million will reach shareholders, especially considering the apparent all-stock nature of the transaction. This uncertainty has previously led investors to clear out of EVFM, but the current deal has alleviated some of these concerns.