Medical-technology company Firefly Neuroscience has announced plans to go public through an all-stock reverse merger with IT-services provider WaveDancer. With a market capitalization of approximately $3 million, WaveDancer shareholders will own approximately 8% of the combined company, which will operate under the name Firefly. The focus of the newly merged company will be on the further development and commercialization of Firefly’s AI-driven Brain Network Analytics. It is noteworthy that this innovative technology has already received approval from the U.S. Food and Drug Administration.
A reverse merger provides a cost-effective avenue for a private company to become publicly traded by merging with a listed company, as opposed to the more traditional initial public offering route.
In conjunction with the merger, WaveDancer will divest its Tellenger operating unit. This divestiture is planned to be completed simultaneously with the Firefly merger, with an anticipated close scheduled in the first quarter of 2024.
Currently trading at $1.58, shares of WaveDancer were suspended from trading during premarket hours on Thursday.
