Buzzing Stocks: Digital River (DRIV), Vitae Pharmaceuticals (VTAE), Lakeland Industries (LAKE)

Digital River, Inc. (NASDAQ:DRIV) has entered into an agreed that could lead to its acquisition by a group of investors that include Siri Capital Group LLC. The potential buyers have proposed $840 million buyout offer, which translates to $26 per share. At that per share price, the deal offers shareholders of Digital River a 50% premium on the closing price immediately before the agreement was announced.

Although the Board of Digital River, Inc. (NASDAQ:DRIV) has already accepted the buyout offer, the agreement allows them to look for a sweeter deal within a 45-day window. If nothing happens to affect the present agreement, the deal is expected to close in 1Q2015.

All the excitements around Vitae Pharmaceuticals Inc (NASDAQ:VTAE) currently have much to do with the positive top-line data from two Phase 1 clinical trials of the company’s investigational drug. The company updated that the trials of its Alzheimer’s disease drug showed encouraging top-line results.

The drug is being developed by Vitae Pharmaceuticals Inc (NASDAQ:VTAE) in collaboration with Boehringer Ingelheim, which is a leading pharmaceutical firm in Germany.

Vitae Pharmaceuticals Inc (NASDAQ:VTAE) carries an “Outperform” rating and target price of $15 from JMP Securities.

Lakeland Industries, Inc. (NASDAQ:LAKE) appears to have irked investors with the announcement of stock-based fundraiser. That explains why the stock’s momentum looked tepid early today despite a feverish Ebola update.

The maker of hazmat suits said it would offer common stock shares in a private placement to raise about $11.2 million in proceeds. The offering has been priced at $10 per share. The funds generated from the offering will help the company to settle its term loan with an institution known as LKL Investments LLC. About $3.6 million is expected to be used in the term loan settlement.

Lakeland Industries, Inc. (NASDAQ:LAKE) said the balance of the funds would go into boosting its production capacity. Some other funds would also be used in paying down its credit facility with a firm called AloStar Bank of Commerce.

About the Author

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.

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