Benzinga | Mar 18, 2021 06:22AM EDT

Why Are Neos Therapeutics, Aytu BioScience Stocks Soaring Today?

Neos Therapeutics Inc (NASDAQ: NEOS) and Aytu BioScience Inc (NASDAQ: AYTU) shares are rising today in the premarket session, though there is no news on both companies.

* The investors are reacting to the companies' respective special meetings of stockholders related to the proposed merger between Aytu and Neos that will happen today.

* Each company's stockholders on record as of February 5 will be eligible to receive notice of vote at their respective company's special meeting.

* Last week, an independent proxy advisory firm Glass, Lewis & Co, recommended Neos Therapeutics stockholders vote "FOR" the merger. Another independent proxy advisory firm, Institutional Shareholder Services Inc., also recommended Neos Therapeutics stockholders vote "FOR" the deal.

* Neos stockholders will receive 0.1088 Aytu shares upon merger closing, valuing the all-stock transaction at approximately $44.9 million.

* The combined company will operate under Aytu Biopharma Inc moniker.

* Price Action: NEOS and AYTU shares are trading 63.8% and 23.1% higher at $1.9 and $11.89, respectively, in premarket trading on the last check Thursday.