JNCE - Jounce jumps 23% as Concentra agrees to acquire for $1.85 per share cash
2023-03-27 10:47:28 ET
- Immunotherapy biotech Jounce Therapeutics ( NASDAQ: JNCE ) added ~23% on Monday after announcing that Concentra Biosciences agreed to acquire it for $1.85 in cash per share plus a non-tradeable contingent value right (CVR).
- Upfront cash consideration implies a premium of ~75% to JNCE’s closing price on Mar. 14, when the company publicly disclosed the buyout interest from Concentra, part of the investment fund Tang Capital Partners.
- Per the terms, a subsidiary of Concentra will begin a tender offer by Apr. 07 to acquire all outstanding shares of the company. The CVR is linked to net proceeds from licensing or sale of Jounce’s ( JNCE ) programs. The transaction is expected to close in Q2 2023.
- Jounce ( JNCE ) said its board no longer recommends the previously announced all-stock merger transaction with U.K.-based Redx Pharma.
- Alongside the acquisition, JNCE announced a ~84% reduction of its workforce which is expected to complete within the next month, leading to ~6.5M of restructuring costs.
- Read: Seeking Alpha analyst E. Roudasev issued a Strong Buy on JNCE before the company generated buyout interest.
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Jounce jumps 23% as Concentra agrees to acquire for $1.85 per share cash