NewGenIvf Group Limited ( NIVF )  shares are blasting higher Monday after the company signed a non-binding term sheet for a potential reverse merger with European Wellness Investment Holdings (EWIHL).

The Details:

The term sheet proposed that NewGen issue 53,600,000 of its ordinary shares to the shareholder(s) of EWIHL in exchange for 100% equity interest of EWIHL, at a price per share of $5, representing an aggregate amount of $268 million. Simultaneously, it is proposed that NewGen raise $30 million from public or private shareholders, in a form mutually acceptable to both NewGen and EWIHL.

“I am thrilled to announce the signing of a non-binding term sheet with EWIHL, a leading healthcare company. The proposed reverse merger will bolster our position in several key ways. Operationally, it will unlock significant synergies, expand our global reach, and help us to further improve fertility outcomes for our customers. Financially, with the acquisition of a profitable business and a US$30 million fundraising, we will be well-equipped to fund our future growth," said Mr. Siu Wing Fung Alfred, CEO of NewGenIvf ( NIVF ). 

"Moreover, the issuance of additional ordinary shares will increase our market capitalization, ensuring higher trading liquidity. Finally, I believe that the deemed price of $5 per share confirms that our current share price is undervalued compared to the long-term fair valuation of the company,” Alfred added. 

NewGenIvf ( NIVF ) shares are moving on heavy trading volume following the announcement. According to data from Benzinga Pro, more than 32 million shares have been traded in the session, compared to the stock’s 100-day average of 645,000 shares.

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How To Buy NIVF Stock:

By now you're likely curious about how to participate in the market for NewGenIvf Group ( NIVF ) – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

NIVF Price Action: According to Benzinga Pro, NewGenIvf ( NIVF ) shares are up 64.9% at $1.27 at the time of publication Monday.

Image: David G. Morgan from Pixabay