The offer price of $0.86 represents a premium of 10.3% to the company’s last closing price on August 15.
LakeShore Biopharma Co. (LSB) on Monday said that its board received a preliminary non-binding proposal letter to acquire all of the outstanding ordinary shares of the company for $0.86 per share.
The proposal from Oceanpine Investment Fund II LP and Oceanpine Capital Inc. was dated August 18 and is for all shares not currently owned by Oceanpine Capital, the company said. The price of $0.86 represents a premium of 10.3% to the stock’s closing price on August 15.
The company said that the board will carefully review and evaluate the proposal to determine the future course of action. However, the board has not made any decisions on the proposal, and there is no assurance that any agreement will be executed, it added.
On Stocktwits, retail sentiment about LakeShore trended in the ‘neutral’ territory over the past 24 hours, while message volume remained at ‘low’ levels. Shares of the company traded 1% higher in the pre-market session at the time of writing.
The proposed transaction will be funded with rollover equity and available cash on hand and will not be subject to a financing condition, Oceanpine said in its letter. “While we are fully prepared to work collaboratively with the Board to pursue the proposed transaction in a timely manner, we are open to exploring potential alternative structures of the Proposed Transaction to expedite the process of delivering value to the Company’s shareholders,” Oceanpine said in its letter.
LakeShore Biopharma operates in China, Singapore, and the Philippines. Its main product is a freeze-dried human rabies vaccine.
LSB stock is down by 77% this year and by about 83% over the past 12 months.
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