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As of May 31, clinical-stage psychedelics company Reunion Neuroscience Inc. (NASDAQ:REUN) closed its doors when it entered into a definitive arrangement with investment business MPM BioImpact for the former’s acquisition in an all-cash transaction valued at approximately $13.1 million under the Canadian Business Corporations Act.
See also: Reunion Neuroscience Enters Compliance Period, Struggles To Remain NASDAQ Listed
All holders of the company’s outstanding common shares would be entitled to receive $1.12 (CA$1.52) in cash for each share, following the Bank of Canada daily exchange rate on May 31 and reportedly representing a 43.1% premium over the trailing 30-trading-day volume weighted average price.
After consulting with financial and legal advisors and with the unanimous recommendation of a special committee of independent directors, Reunion’s board of directors determined the current arrangement is both “in the best interests” of the company and “fair to shareholders.”
See also: Two Major Psychedelics Companies Take Novel Chemical Entity Patent Battle To Federal Court
MPM's managing partner Ansbert Gadicke said the firm is looking forward to partnering with Reunion and that the deal “reflects MPM’s strategy of investing in breakthrough science and innovative products that can address the world’s greatest unmet medical needs.”
A list of shareholders -to be announced on June 12- will have the chance to vote on the arrangement at an upcoming special meeting to take place on or around July 12.
The arrangement’s completion requires at least two-thirds of the shareholders’ votes.
The company said certain shareholders and all Reunion officers and directors, representing altogether around 34% of issued and outstanding shares, have voted in support of agreements with MPM toward the deal.
For the arrangement to take place, Reunion must hold at least $8 million net in cash as of close of business on the third business day immediately prior to closing, and respond to all material respects of the obligations required by the company and MPM under the agreement.
The partners expect to close the arrangement in the third quarter of 2023, after which Reunion will no longer be traded or listed on any public securities exchange and will be wholly owned by MPM affiliates.
Photo: Benzinga edit with photo by Zita and canadastock on Shutterstock.
Posted In: REUN
