Stocks In News: Viggle Inc (VGGL), Corinthian Colleges Inc (COCO), And Exelixis, Inc. (EXEL)
New York, NY – GDP INSIDER – 01/05/2014.
Viggle Inc (NASDAQ:VGGL) entered into a deal to buy GetGlue, another TV fan service company, for a combination of cash and stock. The acquisition is expected to bring together a dedicated engineering and management team at both Viggle and GetGlue. Viggle will meet the cash portion of the deal with $25 million and transfer 48.3 million of its shares to close the acquisition.
Meanwhile, Viggle Inc (NASDAQ:VGGL) is now able to meet is working capital needs and address general corporate issues without much headache following a loan from one of its officers. The company received a $2 million loan from its CEO and Director Robert F.X. Sillerman. The loan attracts an interest rate of 12% annually.
Sillerman is also a director of the company. Most of Viggle Inc (NASDAQ:VGGL)’s independent directors supported the deal. In addition to being an officer, director and executive chairman of Viggle, Sillerman is also a major shareholder in the company, owning more than 10% of its stock.
The troubles with Corinthian Colleges Inc (NASDAQ:COCO) and a deal to have the for-profit educator sell its campuses continue to simmer. In a recent development, a coalition of about 46 advocacy groups have expressed their displeasure with the deal that allows COCO to offloaded dozens of its online campuses.
The coalition charges that the proceeds from the sale of the colleges should go into relieving the students at Corinthian Colleges Inc (NASDAQ:COCO). As such, they are not happy with the arrangement that allows ECMC to acquire the troubled 56 campuses for $24 million.
It has been claimed that the U.S. Department of Education is creating terrible precedent in wavering ECMC to purchase the troubled campuses from Corinthian Colleges Inc (NASDAQ:COCO).
Exelixis, Inc. (NASDAQ:EXEL) and Roche filed with FDA for the approval of their skin cancer treatment known as Cobimetinib. The drug candidate offers hope to the millions of patients with melanoma, and it could also give strength to the shares of Exelixis if the regulator approves the compound. The approval of Cobimetinib is expected to give Exelixis value revenue and help the company reduce its debt.
Cobimetinib carries FDA Fast-Track designation, which is beneficial because it shortens the review period. Roche and Exelixis, Inc. (NASDAQ:EXEL) are also seeking approval for Cobimetinib in Europe, a move that is expected to expand revenue from the sale the drug.
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