Timber Pharmaceuticals (NYSEMKT:TMBR) stock is undergoing a massive rally on Monday after announcing that Leo US is acquiring it in a $36 million deal.
According to a press release from Timber Pharmaceuticals, that acquisition has an upfront payment of $14 million for TMBR stock. There’s also another $22 million on the table in contingent value rights if certain milestones are met.
Timber Pharmaceuticals notes that the offering has the initial price paid to TMBR stock shareholders sitting at $2.62 per share. That’s before any of the contingent value rights. This alone represents an 84.5% premium to the stock’s prior closing price.
John Koconis, Chairman and CEO of Timber Pharmaceuticals, said the following about the acquisition deal with Leo US:
“LEO’s expertise and global footprint make it the best choice to advance and achieve the full potential of Timber’s portfolio of product candidates. We believe that LEO has the potential to establish TMB-001 as the standard of care in the treatment of congenital ichthyosis, a devastating, rare disease.”
Timing of the TMBR Stock Deal
Timber Pharmaceuticals is expecting the deal with Leo Us to close in the fourth quarter of 2023. However, it first needs approval from shareholders and regulators. Investors will note that both companies’ boards have given their unanimous support to the transaction.
TMBR stock is rallying 95.8% on Monday morning as some 15 million shares change hands. For the record, the company’s daily average trading volume is about 323,000 shares.
We’ve got more of the most recent stock market news traders need to know about today below!
Our coverage on Monday includes deep dives into the latest stock market stories worth reading about. A few examples include why shares of Mullen Automotive (NASDAQ:MULN), XPeng (NYSE:XPEV) and AMC Entertainment (NYSE:AMC) stock are in the news today. All of that info is available at the following links!
More Stock Market News for Monday
- MULN Stock Alert: Mullen Produces First Class 3 Electric Vehicle
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- Antara Capital Slashes Its Stake in AMC Entertainment (APE) Stock
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On the date of publication, William White did not hold (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.
