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GWPH Stock: 12 Things to Know About the GW Pharma-Jazz Pharma Deal

GW Pharmaceuticals (NASDAQ:GWPH) stock is soaring higher on Wednesday following news that Jazz Pharmaceuticals (NASDAQ:JAZZ) is acquiring the company.

The letters "M&A" on a wooden table, surrounded by a calculator and other business items. mergers and acquisitions

Source: Shutterstock.com

Here’s everything investors need to know about the deal between the two companies.

  • Jazz Pharma plans to acquire all outstanding GW Pharma American Depositary Shares (ADS) for $220 per share.
  • Each ADS represents 12 shares of GWPH stock.
  • This will have JAZZ paying a 50% premium over the stock’s closing price on Tuesday.
  • The company is using a mix of cash and stock to complete this transaction.
  • This will have it paying $200 in cash and $20 in JAZZ stock for each share of GWPH stock.
  • The number of JAZZ shares used in the acquisition will be calculated based on the price of the stock over a 15-day period before the deal closes.
  • In total, this will have it spending $7.2 billion to acquire GW Pharma, or $6.7 billion after accounting for GWPH’s cash.
  • Jazz Pharma will be using a mix of cash on hand and debt to finance its acquisition of GW Pharma.
  • The deal between the two companies has unanimous support from both’s Boards of Directors.
  • GW Pharma and Jazz Pharma still need to complete customary closing conditions to complete the deal.
  • That includes getting approval from holders of GWPH stock, as well as from regulators.
  • So long as the two companies don’t run into any trouble with this, the deal will close in the second quarter of 2021.

GWPH stock was up 46.3% and JAZZ stock was down 5.5% as of Wednesday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2021/02/gwph-stock-12-things-to-know-about-the-gw-pharma-jazz-pharma-deal/.

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