454 Life Sciences is a majority-owned subsidiary of Curagen Corporation (Nasdaq: CRGN).
Recently, 454 Life Sciences has entered into a definitive agreement with Roche allowing Roche (OTC: RHHBY) to acquire the company.
The terms of agreement include the following:
- 454 Life Sciences' shareholders will receive up to $154.9 million in cash of which Roche will pay $140 million in cash, and up to approximately $14.9 million will be received from the exercise of stock options issued and outstanding prior to the acquisition. Of the $140 million from Roche, $25 million will be placed in escrow for a period of 15 months.
- On a fully diluted basis, presuming exercise of all outstanding stock options, CuraGen expects to receive approximately $85 million before fees and expenses, of which approximately $14 million will be held in escrow.
According to Frank M. Armstrong, M.D., President and Chief Executive Officer of CuraGen Corporation: "We are pleased to announce the successful implementation of this strategic initiative regarding 454 Life Sciences, which allows us to gain liquidity on our investment and to extend our runway to bring our oncology products to market."Find more details of the terms of agreement from the press release.
Comment Preview