Fonar stock rises after buyout proposal at 27% premium

Published 18/07/2025, 21:26
© Reuters.

Investing.com -- Fonar Corporation (NASDAQ:FONR) stock rose 4.2% following confirmation that the company received a buyout proposal from a group led by Timothy Damadian at $17.25 per share in cash.

The proposed acquisition price represents a premium of approximately 27% over the average closing price of Fonar’s common stock for the 90-day trading period ending on June 30, 2025, according to a supplemental proposal letter dated July 17, 2025.

The medical imaging equipment manufacturer, known as "The Inventor of MR Scanning," has formed a Special Committee composed of independent and disinterested directors to review the offer. This committee was initially established in response to interest expressed by the Damadian-led group in a letter dated July 7, 2025.

The company cautioned that the proposal constitutes only an indication of interest and not a binding commitment. No decisions have been made regarding Fonar’s response to the proposed transaction, and there is no guarantee that any agreement will be executed or that the proposed transaction will be approved or consummated.

Fonar stated that it does not anticipate making further public statements about this matter unless it enters into a definitive agreement or the Special Committee determines that no transaction will occur. The Special Committee will review the proposal with independent financial and legal advisors to determine the course of action in the best interest of the company and all shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.