Shares of Theratechnologies (NASDAQ:THTX) rose after the company announced on Thursday that it will be acquired by CB Biotechnology, a subsidiary of Future Pak, in a deal valued at $254M.
CB Biotechnology plans to purchase Theratechnologies for $3.01 per share in cash, along with one contingent value right per share, which could lead to additional cash payments of up to $1.19 per CVR if specific milestones are achieved.
The upfront cash offer and the total potential cash consideration represent premiums of 126% and 216%, respectively, compared to the Nasdaq closing price before Future Pak's initial non-binding proposal was made public.
Future Pak will finance the transaction through a mix of debt and available cash.
In certain situations, Theratechnologies will owe a termination fee of $6M to CB Biotechnology.
Conversely, if the deal does not go through under specific circumstances, CB Biotechnology will be required to pay a reverse termination fee of $12M to the Theratechnologies.
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