Safeguard Scientists, Inc. [NYSE: SFE] disclosed that it has decided to dump its stake in Zipnosis. Safeguard used a total of $10.0 million to Zipnosis starting in December 2015. Safeguard accepted $3.3 million of initial cash profits and a preferred equity interest in Bright Health Group. The firm disclosed that the majority of the payment it has accepted in the deal is mirrored in this preferred equity interest.
Furthermore, SFE revealed that extra cash profit could be obtained from the final decisions of net working capital and the resolution of various depository possibilities. Safeguard will present a report of a profit on the sale of the Zipnosis ownership stake for the quarter completed March 31, 2021, based upon the total value obtained from the deal.
Shares of Safeguard Scientists plunged 2.12% at $6.45 during the trading session of Monday. The firm has recorded a trading volume of 83.34K as compared to the average volume of 109.38K. In the past 52-week of the trading session, the firm shares went up 26.97% from their 52-week low and went down -24.91% from their 52-week high. It has a total market capitalization of $134.10 million at the time of writing.
Safeguard commented that it is delighted about this deal and the outlook for the Safeguard of being a Bright Health shareholder. The firm has also congratulated Zipnosis for the accomplishment. The firm is hoping for its success as part of the Bright Health Team.