That acquisition offer has Concentra Biosciences seeking to acquire JNCE stock for $1.80 per share in cash. That represents an 80% premium over the company’s closing price on Tuesday. It’s also about the same premium as its closing price prior to news of a planned merger with Redx Pharma.
To go along with this, the offer from Concentra Biosciences also includes a contingent value right. This would see “80% of the net proceeds payable from any license or disposition of certain of Jounce’s legacy programs.”
Investors will also note that Tang Capital Partners is the controlling shareholder of Concentra Biosciences. That matters as the firm also holds a roughly 10.2% stake in JNCE stock. Its offer requires confirmatory due diligence and at least $130 million of cash and cash equivalents at closing.
What This Means for JNCE Stockholders
Jounce Therapeutics’s board of directors says it’s considering the offer from Concentra Biosciences. However, the company notes that shareholders don’t need to take any action at this time. The board intends to act in the best interest of shareholders.
Jounce Therapeutics and Redx Pharma are planning for an all-stock merger. The current plan has that closing in the second quarter of 2023. That might change considering this new offer from Concentra Biosciences.
JNCE stock is up 36.8% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.