Lisata Therapeutics, Inc. (NASDAQ:LSTA) shares slipped in after-hours trading Tuesday after the clinical-stage biotechnology company disclosed an update related to its pending acquisition.
Lisata stock closed Tuesday’s regular session down 36.45% at $2.24 before falling 3.57% to $2.16 in after-hours trading.
The company develops targeted therapies for solid tumors using its proprietary CendR platform, which is designed to improve the delivery of anti-cancer treatments.
Buyer Unable To Fund Tender Offer
In an amendment to its Schedule 14D-9 filed Tuesday, Lisata said the tender offer by Kuva Acquisition Corp., a wholly owned subsidiary of Kuva Labs Inc., expired on July 20.
According to the filing, approximately 6.1 million shares, representing 66.8% of Lisata’s outstanding common stock, were validly tendered and not withdrawn before the offer expired, satisfying the deal’s minimum tender condition.
However, Lisata said Kuva informed the company that it had been unable to obtain sufficient financing to fund the acquisition as of the offer’s expiration.
The company said the purchaser has not accepted the tendered shares for payment and has not confirmed when, if at all, it expects to do so.
Lisata added that it believes all conditions to the tender offer have been satisfied and that the purchaser is obligated to promptly pay for the tendered shares. The company said it is evaluating its legal rights and remedies should the buyer fail to complete the transaction.
The filing noted that the board’s recommendation in favor of the tender offer remains unchanged despite the financing uncertainty.
Trading Metrics
Lisata Therapeutics has a market capitalization of approximately $20.4 million, with a 52-week high of $5.06 and a 52-week low of $1.81.
Over the past 12 months, LSTA shares have declined approximately 15.15%.
Benzinga Edge Stock Rankings show positive price trends across the short- and long-term time frames, while the medium-term trend remains negative
Photo Courtesy: Kumotion on Shutterstock.com
Login to comment