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FORT WORTH - PharmChem, Inc. (OTC:PCHM), a provider of sweat patches for drug abuse detection and a prominent player in the Chemicals industry according to InvestingPro, announced Monday it has entered into a definitive agreement to be acquired by Alcohol Monitoring Systems, Inc. in an all-cash transaction.
Under the terms of the agreement, PharmChem shareholders will receive $3.75 per share, representing a 22% premium to the company’s closing price on January 31, 2025, before PharmChem announced it was exploring strategic alternatives. The offer comes as PharmChem’s stock has shown strong momentum, with a YTD return of ~21% and trading near its 52-week high of $3.98.
The transaction, unanimously approved by PharmChem’s board of directors, is expected to close before the end of the third quarter, subject to shareholder approval and other customary closing conditions. The company has already secured support agreements for 52% of outstanding shares. InvestingPro data shows PharmChem maintains a "GREAT" financial health score of 3.21, operating with moderate debt levels and impressive profit margins.
"We conducted a robust process, had a number of interested parties and indications of interest, and are pleased that we were able to have PharmChem join with a company where the product’s reach can be expanded," said Thompson Clark, PharmChem’s Interim CEO.
Chris Linthwaite, CEO of Alcohol Monitoring Systems, stated the acquisition would expand the company’s capabilities into drug testing, complementing its portfolio of alcohol and location monitoring technologies.
PharmChem, headquartered in Fort Worth, Texas, is the manufacturer and sole source provider of the PharmChek Drugs of Abuse Sweat Patch.
The announcement was made in a company press release statement.
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