A lawsuit was filed for investors in shares of Cogentix Medical, Inc. (NASDAQ: CGNT) in connection with the proposed takeover and NASDAQ: CGNT stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 04/10/2018 -- An investor, who currently holds shares of Cogentix Medical, Inc. (NASDAQ: CGNT), filed a lawsuit against the acquisition of Cogentix Medical, Inc. by Laborie Medical Technologies.
Investors who purchased shares of Cogentix Medical, Inc. (NASDAQ: CGNT) and currently hold any of those NASDAQ: CGNT shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ: CGNT stockholders by agreeing to sell Cogentix Medical, Inc. cheaply via an unfair process.
On March 12, 2018, Cogentix Medical, Inc. (NASDAQ: CGNT), announced that it has entered into a definitive merger agreement, under which Laborie Medical Technologies (LABORIE) will acquire all of the outstanding shares of Cogentix Medical for a total consideration of approximately $239 million. Under the terms of the definitive merger agreement, LABORIE (through its wholly-owned subsidiaries LM US Parent, Inc. (Parent) and Camden Merger Sub, Inc. (Merger Sub) will commence a tender offer for all outstanding shares of Cogentix Medical common stock for $3.85 per share in cash.
However, plaintiff claims that the proposed consideration NASDAQ: CGNT shareholders will receive is grossly inadequate and undervalues Cogentix Medical, Inc. Indeed, at least one analyst has set the high target price for NASDAQ: CGNT shares at $5.00 per share. Cogentix Medical, Inc. reported that its annual Total Revenue rose from $36.62 million to $51.85 million.
In addition, the plaintiff alleges that the process is also unfair NASDAQ: CGNT stockholders. Indeed, Accelmed Growth Partners LP and Mr. Lewis Pell, who collectively beneficially own shares representing approximately 60% of Cogentix Medical's outstanding common stock, have already entered into tender and support agreements in favor of Parent and Merger Sub, pursuant to which those stockholders, among other things, will agree to tender all of their shares of Cogentix Medical common stock beneficially owned by them to Merger Sub in response to the tender offer, as well as restrictive covenant agreements in favor of Parent and Merger Sub.
Those who are current investors in Cogentix Medical, Inc. (NASDAQ: CGNT) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
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