Kinnate Biopharma Inc. (NASDAQ: KNTE) shares jump Friday, as the clinical-stage precision oncology company today announced it has entered into a definitive merger agreement whereby XOMA Corporation will acquire Kinnate for a price per share of Kinnate common stock of between $2.3352 and $2.5879 in cash, consisting of (i) a base cash price of $2.3352 per share and (ii) an additional cash amount of up to $0.2527 per share, plus one non-transferable contingent value right per share, representing the right to receive (a) 100% of the net proceeds payable from any disposition of the Company’s investigational pan-RAF inhibitor, exarafenib, and/or any other pan-RAF inhibitors prior to the closing of the merger transaction and (b) 85% of the net proceeds payable from any disposition of other Kinnate assets entered into prior to, or within one year from, closing and received within five years of closing pursuant to a definitive contingent value rights agreement.
Following a thorough review process conducted by a special committee of disinterested and independent members of Kinnate’s Board of Directors, with the assistance of the Special Committee’s legal and financial advisors, all disinterested and independent members of the Board unanimously determined that the acquisition by XOMA is in the best interests of all Kinnate shareholders, and has, following the unanimous recommendation of the Special Committee, approved the Merger Agreement and related transactions.
KNTE shares muscled up 26 cents, or 11.6%, Friday morning to $2.53.
