AeroClean Technologies, Inc. (NASDAQ: AERC) is engaged as an air purification and pathogen elimination technology company. The company’s flagship product, Purgo, is a Class II medical device with FDA 510(k) clearance that is capable of providing air purification, sanitization, and supplemental ventilation. Shares of the air purifying technology company are rallying 39% through early trading on Tuesday, October 4, 2022. Over the past three months, AeroClean Technologies has seen an average daily volume of 2.23 million shares. However, a volume of 28.11 million shares, or dollar volume of around $128.46 million, has already exchanged hands through early trading.
Shares of AeroClean are surging after the company announced it has entered into a definitive agreement to merge with Molekule, Inc. in an all-stock transaction. Once combined, the company will have a massive range of proprietary and patented air purification products with FDA clearance, to take on the rapidly-growing, $15 billion global air purification market.
Under the terms of the merger transaction, AeroClean shareholders will own 50.5% of the newly-combined company and Molekule investors will own 49.5%. AeroClean plans to then change its name and ticker symbol to Molekule, Inc. (NASDAQ: MKUL) and continue to base its headquarters in Palm Beach Gardens, Florida. The combined company is estimated to generate revenues of $45 million during the full-year 2022 on a pro forma combined basis. Furthermore, the combined entity is expected to generate organic revenue growth in the double digits, with gross profit expected to grow faster than revenues thanks to expanding gross margins.
AeroClean’s CEO Jason DiBona and CFO Ryan Tyler will remain in their roles for the combined company. Molekule’s CEO, Jonathan Harris, will become the new Chief Commercial Officer of the combined company. The board of directors will expand to seven members with existing Molekule board member and co-founder of the venture capital firm Foundry, joining the board.
Amin Khoury, Chairman of the Board of AeroClean: “Our complementary operations and cultures and our shared commitment to customer satisfaction will provide us with an enhanced ability to serve our clients and to create value for stockholders. We believe the combined company will be able to generate significant, organic revenue growth particularly in the B2B channel as we begin the roll out our SaaS IAQ solutions. In addition we expect to be well-positioned to pursue additional strategic acquisitions.”
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