Lisata tumbles as buyer Kuva fails to fund takeover on time
LSTA•Lisata falls after takeover buyer misses funding deadline
Shares of drug developer Lisata Therapeutics LSTA.O fell 30.8% to a nearly six-month low of $2.44 after the company said Kuva Labs, which is seeking to acquire it, had not paid for shares tendered in the takeover offer after telling Lisata it was unable to secure enough financing.
Lisata said in a SEC filing that Kuva agreed in January to buy Lisata, though the exact cash-and-rights structure was revised multiple times and the tender offer deadline was extended several times. The tender offer by Kuva Acquisition Corp, a unit of Kuva Labs, expired late on July 20.
Tendered shares met minimum condition but payment was not made
About 6.1 million shares, or roughly 66.8% of Lisata's total outstanding shares, were tendered and not withdrawn, satisfying the minimum acceptance condition.
Lisata said all conditions of the offer had been met, but Kuva said it could not secure enough financing in time. Kuva has not accepted or paid for the shares, and Lisata said it is now weighing its legal options.
As of the last close, the stock was up 89% year to date.
