FAIRFAX, Va. - WaveDancer, Inc. (NASDAQ: WAVD), an information technology systems provider, and Firefly Neuroscience, Inc., a medical technology company, have announced the effectiveness of their Registration Statement by the Securities and Exchange Commission, a significant step toward their proposed merger. WaveDancer has begun sending definitive proxy statements to its shareholders, with a special meeting scheduled on March 14, 2024, to vote on the merger.
The companies initially announced their merger plans on November 15, 2023, with an agreement that Firefly would merge with a wholly-owned subsidiary of WaveDancer, ultimately making Firefly a subsidiary of WaveDancer. The transaction is expected to close earlier in the second quarter of 2024 than previously anticipated.
Jamie Benoit, Chairman and CEO of WaveDancer, expressed optimism about the accelerated timeline and the benefits for stockholders, citing the potential of Firefly's FDA-cleared Brain Network Analytics (BNA™) platform, which utilizes artificial intelligence, to improve outcomes for mental health and cognitive disorders. Jon Olsen, CEO of Firefly, echoed this sentiment, looking forward to the opportunities that becoming a publicly traded company would bring.
Firefly's BNA™ platform is built upon a proprietary database of EEG recordings and behavioral data, which is used by their AI platform to discover biomarkers for mental illnesses and cognitive disorders. The company aims to advance diagnostic and treatment approaches in brain health.
Following the merger, WaveDancer's current business will be divested, and the company plans to rename itself Firefly Neuroscience, focusing solely on advancing Firefly's business. The combined company's common stock is anticipated to be listed on NASDAQ under the ticker symbol "AIFF."
The merger is subject to approval by WaveDancer's stockholders, and the definitive proxy statement/prospectus contains important information about the proposed transaction. The documents filed with the SEC are available on WaveDancer's website and through the SEC's website.
This news is based on a press release statement.
InvestingPro Insights
As WaveDancer, Inc. (NASDAQ: WAVD) prepares for its merger with Firefly Neuroscience, Inc., investors may be closely monitoring the company's financial health and market performance. According to InvestingPro, WaveDancer has been trading at a low revenue valuation multiple, which could indicate a potential undervaluation of the company's stock relative to its revenue. This is particularly relevant as the merger could impact the company's future revenue streams and market valuation.
The company's stock has experienced a strong return over the last three months, with a 23.46% price total return, which could signal growing investor confidence leading up to the merger. However, it's important to note that WaveDancer has also seen a significant price drop over the last year, with a -73.85% price total return, suggesting that the stock has faced substantial volatility.
InvestingPro Data metrics reveal a market capitalization of 3.42M USD, indicating the size of the company in the market. Despite the recent positive price movement, WaveDancer operates with a negative P/E Ratio (adjusted for the last twelve months as of Q3 2023) of -0.75, reflecting its lack of profitability over the period. Additionally, the company's revenue has decreased by 21.6% over the last twelve months as of Q3 2023, which investors may want to consider in the context of the upcoming merger.
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