Allakos surges on reverse merger deal with Concentra Biosciences

Seeking Alpha News (Wed, 02-Apr 8:39 AM)

  • Nanocap biotech Allakos (NASDAQ:ALLK) announced a merger agreement on Wednesday to be acquired by privately held Concentra Biosciences, LLC, for $0.33 per share in cash as part of a deal expected to close in May.
  • Shares of San Carlos, California-based biotech climbed ~46% after the announcement. 
  • Per the terms, a subsidiary of Concentra is scheduled to begin a tender offer by Apr. 15 to buy all outstanding shares of Allakos (NASDAQ:ALLK) common stock.
  • “Allakos’ Board of Directors has unanimously determined that the acquisition by Concentra is in the best interests of all Allakos shareholders,” the company said.
  • ALLK added that its officers, directors, and their related parties, representing nearly 8% of the company’s common stock, have signed agreements in favor of the deal and pledged to tender their shares when the offer begins.