Sesen Bio ( NASDAQ: SESN ) stock climbed 35.4% after the bell on Thursday after the firm said it will increase the one-time special cash dividend to its shareholders to ~$70M, or ~$0.34/share.
The special dividend, in connection with Sesen's ( SESN ) acquisition by Carisma Therapeutics , represents excess cash available after Sesen ( SESN ) meets a required net cash minimum of $75M.
Prior dividend was up to $25M, or up to $0.12/share.
The contingent value right payable to Sesen ( SESN ) shareholders will also include proceeds from any sale of Vicineum and Sesen's ( SESN ) other preclinical assets, as well as proceeds from the milestone payment under the Roche asset purchase agreement.
Once the merger closes, Sesen ( SESN ) shareholders are expected to own 25.2% of the combined company.
The merger and related financing are expected to close in Q1 2023.
Last month, Bradley Radoff, Michael Torok and affiliates disclosed 5.7% stake in Sesen ( SESN ). The group indicated that it would not support the Carisma deal and demanded special cash dividend of $0.50/share, or ~$100M.
Earlier this month, the group disclosed 7.4% stake in the company. Sesen ( SESN ) and Carisma engaged with the group to reach a resolution, offering to raise the dividend to ~$70M. However, the group continues to demand an ~$100M dividend.
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Sesen Bio stock climbs 35% after hours on raised special dividend in Carisma merger