Fonar (FONR) said Tuesday it has entered into a definitive agreement on Dec. 23 to be fully acquired by a group of investors led by Chief Executive Officer Timothy Damadian in an all-cash transaction.

Under the terms of the deal, Fonar stockholders will receive $19 per share for common stock and Class B common stock, $6.35 per share for Class C common stock, and $10.50 per share for Class A non-voting preferred stock, the company said.

The acquisition group includes members of Fonar's management, board of directors, and certain third parties, Fonar added. The transaction is expected to close in the fiscal Q3, subject to customary closing conditions. The deal is not subject to any financing conditions.

Following completion of the transaction, Fonar shares will stop trading on the Nasdaq Stock Market.

The buyers plan to finance the acquisition through a combination of new debt, new equity, and the rollover of company securities, Fonar said, addING that a $35 million debt facility commitment has already been secured from OceanFirst Bank.

Fonar shares were up more than 26% in recent prebell activity Tuesday.