FONAR Receives Acquisition Proposal from CEO Group for $17.25 Per Share

Fonar Corporation has received an acquisition proposal from a group led by CEO Timothy Damadian to buy all outstanding shares for $17.25 per share in cash. This could significantly impact the company's ownership structure and market positioning. Fonar's overall stock score of 77 reflects solid financial performance and positive technical indicators, but challenges in revenue growth and cash flow volatility remain.

Title: Fonar Corporation Receives Acquisition Proposal from Insider Group

MELVILLE, NY — FONAR Corporation (NASDAQ: FONR), a pioneer in MRI technology, has received a proposal from a group led by CEO Timothy Damadian to acquire all outstanding shares not currently owned by the group for $17.25 per share in cash. This offer represents a significant development for the company, potentially altering its ownership structure and market positioning.

The proposed price of $17.25 per share is approximately 27% higher than the average closing price of FONAR’s stock over the 90-day trading period ending June 30, 2025, according to the supplemental proposal letter dated July 17. This premium indicates a strong valuation of the company, which currently has a market capitalization of approximately $100 million.

FONAR’s strong financial health is highlighted by its current ratio of 10.05 and its holding of more cash than debt. The company has maintained profitability over the last twelve months, with a P/E ratio of 12.53 and gross profit margins exceeding 41%. Despite these positive indicators, the company continues to face challenges in revenue growth and cash flow volatility.

The Special Committee of independent directors formed by FONAR to evaluate potential transactions will review the proposal with independent financial and legal advisors. No action is required by shareholders at this time, and the company has cautioned that the proposal is only an indication of interest and does not constitute a binding commitment.

FONAR, incorporated in 1978, claims to be the first and oldest MRI company in the industry. The company’s signature product, the FONAR UPRIGHT Multi-Position MRI, allows scanning patients in various weight-bearing positions. The company has maintained profitability over the last twelve months, with a P/E ratio of 12.53 and gross profit margins exceeding 41%.

The acquisition proposal comes as FONAR has recently appointed Robert M. Carrino as a new independent director, bringing extensive public accounting experience to the board. Carrino’s expertise is expected to be valuable as the company transitions into accelerated filer status.

In other developments, FONAR recently held its Annual Meeting of Stockholders, where the existing board of directors was re-elected, and executive compensation was approved by shareholders. The meeting also resulted in the ratification of CohnReznick LLP as the company’s auditors for the fiscal year ending June 30, 2025.

This article is based on information from a company press release and provides a neutral, objective overview of the recent events surrounding FONAR Corporation.

References:
1. [1] https://www.investing.com/news/company-news/fonar-receives-1725-per-share-acquisition-proposal-from-insider-group-93CH-4142534
2. [2] https://in.investing.com/news/company-news/fonar-receives-1725-per-share-acquisition-proposal-from-insider-group-93CH-4918477
3. [3] https://www.stocktitan.net/sec-filings/FONR/