Lisata said that it has entered into a binding term sheet under which the two companies agreed to negotiate in good faith and enter into a customary purchase agreement.
- Lisata and Kuva intend to enter into a definitive purchase agreement before Feb 27.
- Under the deal, Kuva will commence a tender offer to purchase all of the outstanding shares of common stock of Lisata at a price of $4.00 per share in cash.
- Lisata shareholders will also be entitled to up to $2 per share contingent upon the achievement of certain pre-specified milestones.
Shares of Lisata Therapeutics, Inc. (LSTA) soared 88% on Wednesday after the company said that it has a buyout offer from privately held Kuva Labs, Inc., valuing the company at up to $6/share.
Lisata said that it has entered into a binding term sheet under which the two companies agreed to negotiate in good faith and enter into a customary purchase agreement whereby Kuva will commence a tender offer to purchase all of the outstanding shares of common stock of Lisata at a price of $4.00 per share in cash. In addition, Lisata shareholders will be entitled to up to $2 per share contingent upon the achievement of certain pre-specified milestones.
The transaction has been approved by the board of both companies and Lisata and Kiuva intend to enter into a definitive purchase agreement before Feb 27, Lisata said.
The $4 upfront purchase price represents a premium of about 85% from the stock’s closing price on Tuesday.
Lisata’s Pipeline
Lisata’s lead product candidate Certepetide is an investigational drug designed to activate a novel uptake pathway that allows co-administered or tethered anti-cancer drugs to target and penetrate solid tumors more effectively.
In November 2024, Kuva had licensed Certepetide as a targeting and enhanced delivery agent to be used with its NanoMark platform technology. The NanoMark platform enables selective imaging of solid tumors with high contrast and spatial resolution, facilitating faster and more accurate diagnosis and treatment.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around LSTA stock jumped from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘high’ to ‘extremely high’ levels.
A Stocktwits user said that they are not selling their shares for below $8.
Another wondered if some other company would make a higher bid for Lisata.
LSTA stock has gained 4% over the past 12 months.
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