Patient Safety Technologies, Inc. (OTCMKTS:PSTX) To Be Acquired By Stryker Corporation

In our previous article about PSTX we told you that the company certainly stands out among the numerous pennystocks striving to make it big in the medical industry. PSTX have a rather unique completed product in the form of their Safety-Sponge® System which is designed to help hospitals dramatically reduce the cases of retained medical sponges after surgeries.

Thanks to it PSTX commands financials several times above what we are used to seeing. Not only that but they have been able to constantly improve on their results with the only thing holding them back being the negative bottom line. The latest report for the quarter ending September 30 once again showed better numbers in almost every category compared to the previous period: 

• $4.9 million cash
• $10.5 million total current assets
• $5 million total current liabilities
• $5.2 million revenues
• $384 thousand net loss

The financial stability and the unique product certainly have been among the major points that have attracted the attention of Stryker Corp. They are offering to acquire PSTX in an all cash transaction amounting to approximately $120 million, or $2.22 per common share of the company. And here lies the biggest problem with the deal.

Many people are viewing this proposed price as being too low with PSTX reaching $2.36 per share on their own a couple of months back. Since the acquisition was announced at least three different law firms have declared that they will be investigating potential legal claims against the board of directors of PSTX. What the ultimate outcome will be remains to be seen but the acquisition is expected to be completed during the first quarter of 2014.

Another big news also influenced the market yesterday. Almost every company operating within the marijuana and cannabis industry received a major boost in price after investors went into a buying frenzy. The reason for the industry upswing was the first legal sale of marijuana for recreational use in the state of Colorado. In early trading today enthusiasm is holding strong with Medical Marijuana, Inc. (OTCMKTS:MJNA) and Growlife, Inc. (OTCBB:PHOT), the two leading companies in the sector, continuing to race up the stockchart. MJNA is currently 13% up trading for $0.175 while PHOT is sitting a bit lower at $0.166 per share.