11:15 AM EDT, 04/03/2024 (MT Newswires) -- Asensus Surgical ( ASXC ) shares jumped more than 28% in recent trading after the company said Wednesday that it has entered into a non-binding letter of intent with medical technology company KARL STORZ for a potential acquisition of Asensus.

Asensus said that the letter of intent includes the proposal to acquire all of its common shares for $0.35 per share in cash which KARL STORZ said represents its "best and final" offer.

The company also said it entered into a promissory note with KARL STORZ that will allow Asensus to get a loan of up to $20 million from KARL STORZ.

The loan will provide liquidity of up to $10 million in an exclusivity period, during which Asensus will not discuss alternative deals. Additional funding of as much as $10 million will be available under the loan to fund operations while Asensus pursues stockholder approval of the deal, in case a definitive merger agreement for one is executed, the company said.

Price: 0.27, Change: +0.06, Percent Change: +28.21