XOMA Royalty Completes Successful Tender Offer for Turnstone
XOMA Royalty Completes Successful Tender Offer
XOMA Royalty Corporation (NASDAQ: XOMA) has successfully concluded its tender offer to acquire Turnstone Biologics Corp. The transaction exemplifies XOMA's dedication to enhancing biotech innovations aimed at improving human health.
Details of the Tender Offer
Turnstone stockholders received an impressive $0.34 per share in cash. This deal included a contingent value right (CVR), ensuring further potential value for the investors. The tender offer closed on the expiry date, and XOMA saw significant participation with over 17 million shares tendered.
Significant Shareholder Participation
As the offer concluded, XOMA accepted valid tendered shares, representing approximately 74% of Turnstone's outstanding stock. This enthusiastic approval underscores investor confidence in the merger and the future potential of both companies.
After the Tender Offer
Following the completion of the tender process, XOMA merged Turnstone with its subsidiary, XRA 3 Corp. All remaining shares of Turnstone that weren’t tendered are set to receive the same offer price. Consequently, Turnstone becomes a fully-owned subsidiary of XOMA Royalty.
Share Delisting and Future Outlook
With the merger completed, Turnstone’s shares will cease trading on The Nasdaq Stock Market. An immediate delisting is anticipated, allowing XOMA to streamline operations moving forward.
Advisors and Strategic Insights
XOMA was legally advised during the transaction by Gibson, Dunn & Crutcher LLP, with financial advisorship provided by Leerink Partners. This strategic partnership highlights the importance of expert guidance through critical transactions within the biotech sector.
About XOMA Royalty Corporation
XOMA Royalty Corporation is committed to supporting biotech firms by acquiring future economic rights from therapeutic candidates. This non-dilutive funding approach enables companies to focus on advancing their innovations while benefiting from a robust portfolio of royalty rights.
Frequently Asked Questions
What was the main purpose of XOMA's tender offer for Turnstone Biologics?
The primary goal was to acquire Turnstone's outstanding shares, offering stockholders immediate cash benefits while integrating Turnstone’s capabilities into XOMA's operations.
What does this merger mean for Turnstone Biologics' future?
The merger allows XOMA to strengthen its portfolio while ensuring that remaining Turnstone shareholders receive the value from their investments through the purchase offer.
How much did Turnstone's stockholders receive in the tender offer?
Stockholders received $0.34 per share in cash, along with contingent value rights that could yield additional benefits in the future.
Will Turnstone stock continue to be traded on Nasdaq?
After the merger completion, Turnstone's stock will cease to trade on Nasdaq as it becomes a wholly owned subsidiary of XOMA Royalty.
What role does XOMA play in the biotechnology sector?
XOMA functions as a royalty aggregator, providing funding to biotech companies by acquiring future economic rights to their therapeutic candidates, thus enhancing their capacity for innovation.
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