The special dividend is payable on September 5, 2019 to stockholders of record as of the close of business on August 28, 2019. The ex-dividend date for the special dividend will be September 6, 2019, the first trading day following the payment date. Stockholders of record on the record date who sell their shares prior to the ex-dividend date will not receive the special dividend. Based on the current number of shares outstanding, the special dividend will be approximately $1.50 per common share; this amount may vary based on the number of outstanding shares as of the record date.
"The authorization of a special dividend higher than the range that we had initially estimated is an important step in implementing the strategic plan that we announced on May 30, 2019 and reflects our success in restructuring the Company and the recent closing of the sale of certain programs to 14ner Oncology, Inc.," said Gary Crocker, Chairman of Merrimack's Board of Directors. "Our remaining cash balance is anticipated to support operations into 2027, when we estimate the longest-term potential Ipsen milestone may be achieved."
Merrimack Pharmaceuticals , Inc. is a biopharmaceutical company based in Cambridge, Massachusetts that is entitled to receive up to $455.0 million in contingent milestone payments related to its sale of ONIVYDE® to Ipsen S.A. in April 2017 and up to $54.5 million in contingent milestone payments related to its sale of anti-HER3 programs to 14ner Oncology, Inc. in July 2019. The Company is seeking potential acquirers for its remaining preclinical and clinical assets.
Why is the $20 million special dividend significant?
Because $MACK has a market cap of just $80 million.
$MACK looks to be a buy and hold.
As always, use protective stops and trade with caution.
Good luck to all!