Concentra Biosciences/Tang Capital Management acquires Kronos Bio
Concentra keeps coming back to the well for more water. 2 years until expiration.
Please read the SEC documents regarding this current security and understand that I do own of these shares. This isn’t an offer or solicitation to buy shares.
Consideration: Kronos Bio shareholders received:
Cash Amount: $0.57 in cash per share. This represented a discount (around 35-36%) to Kronos Bio's stock price prior to the deal announcement
Contingent Value Right (CVR): One non-transferable CVR per share. This CVR offers potential future payments tied to:
Disposition of assets: 50% of net proceeds from the sale of KB-9558 and KB-7898 if they are sold within two years post-closing. 100% of net proceeds from the disposition of KB-0742, lanraplenib, and entospletinib if sold prior to closing.
Cost Savings: Varying percentages of cost savings realized by the company: 100% pre-closing, 80% within two years post-closing, and 50% between two and three years post-closing. The primary source of CVR value was projected lease termination savings of $18.2 million, equating to at least $0.29 per CVR.
Conditions: The closing of the offer was subject to customary conditions, including the tender of a majority of outstanding shares (Kronos officers, directors, and affiliates holding approximately 27% of shares committed to tendering), and Kronos Bio having at least $40.0 million in cash (net of transaction costs and other liabilities) at closing.
Valuation: The total deal was valued at approximately $34.8 million.
Smarter men than me opining on the deal: From Alpha Vulture
https://alphavulture.com/2025/05/15/kronos-bio-where-did-the-money-go/
https://www.investing.com/news/sec-filings/kronos-bio-ends-lease-early-expects-cost-savings-93CH-4082641
“As a result of the termination of the Original Lease, and related costs the Company no longer expects to incur in connection with the Original Lease, the Company estimates approximately $18.2 million in aggregate additional cost savings. Pursuant to the CVR Agreement, the Company expects an additional payment to its CVR Holders of at least $0.29 per CVR as Additional Closing Net Cash Proceeds from such cost savings, in addition to any other additional payments that may become due pursuant to the CVR Agreement. Such Additional Closing Net Cash Proceeds will be paid to CVR Holders no later than 60 days following the consummation of the Merger.”
Final trade 0.88
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