LakeShore Biopharma Receives Revised Proposal To Acquire Company

LakeShore Biopharma Co., Ltd (LSB) on Thursday announced that its board of directors has received a revised preliminary non-binding proposal letter from a consortium to acquire all of the outstanding ordinary shares of the company in an all-cash transaction for $0.86 per ordinary share.

The consortium is comprised of Oceanpine Investment Fund II LP, Oceanpine Capital Inc., and Crystal Peak Investment Inc. Members of the consortium currently beneficially own in aggregate approximately 52.1% of the company's issued and outstanding ordinary shares.

The revised proposal letter, dated August 26, revises the preliminary non-binding proposal letter dated August 18, previously received from Oceanpine Capital.

On Stocktwits, retail sentiment around LSB stock jumped from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.

LakeShore said its board has formed a special committee consisting of its three independent directors, Adam Zhao, Thomas Xue, and Chunyang Shao, to evaluate and consider the revised proposal letter and transaction.

The company has not made any decisions regarding its response to the proposal, it said, while adding that there is no assurance that a definitive offer will be made or an agreement executed.

LakeShore said that the proposed purchase price per share of $0.86, which represents a premium of about 9% from the stock’s closing price on Wednesday, remains unchanged from the original proposal.

The members of the consortium, however, have entered into an agreement to vote all of their shares in favor of the proposed transaction. They also do not intend to sell their shares to any third party or support any competing bid while remaining members of the consortium, LakeShore said.

LSB stock is down by 77% this year and by 82% over the past 12 months. 

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