Liminal BioSciences Inc. (NASDAQ: LMNL) shares surge 40% as they announce that they have entered into an agreement with  Structured Alpha LP (“SALP”), a fund managed by Thomvest Asset Management Ltd. Under this agreement, SALP will acquire all the common shares of Liminal BioSciences that it does not already own.

The shareholders of Liminal BioSciences (excluding SALP and its affiliates or associates) will receive $8.50 in cash for each common share they own. This represents a significant premium of approximately 135% over the closing share price of Liminal BioSciences on the Nasdaq stock exchange on April 4, 2023. The agreement has the support of the board of directors of Liminal BioSciences.

The transaction will be completed through a court-approved plan of arrangement under the Canada Business Corporations Act and is subject to customary closing conditions. Once the transaction is completed, Liminal BioSciences will no longer be required to comply with reporting requirements in Canada and the United States. The completion of the transaction is subject to approval from the shareholders of Liminal BioSciences.

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BMO Capital Markets was also hired by the Special Committee of Liminal BioSciences and provided an independent opinion and formal valuation regarding the fairness of the consideration received under the acquisition arrangement. Their opinion indicates a fair market value range of US $5.00 to US $15.00 per share. The opinion and valuation were based on various factors, assumptions, procedures, limitations, and qualifications, which will be included in the management information circular sent to Liminal BioSciences shareholders for review.

Liminal BioSciences will be providing additional information to its shareholders in the form of a management information circular, which will be mailed in the coming weeks. The circular will contain further details about the transaction and the reasons behind the recommendations made by the Special Committee and the board of directors of Liminal BioSciences.

What led to the Acquisition?

Liminal BioSciences (NASDAQ: LMNL) is developing a pipeline for G protein-coupled receptors (GPCRs). The company was clear about seeking Global & Regional co-development partners to accelerate its path to market. 

What’s important about GPCRs is they are one of the most intensively studied drug targets, as they are active in a wide range of disease areas and offer broad therapeutic potential

GPCRs have become prime targets for the development of pharmaceutical drugs. In fact, it is estimated that ~35% of currently approved drugs target GPCRs. These drugs can either activate (agonists) or inhibit (antagonists) the activity of specific GPCRs to modulate cellular signaling and physiological responses.

GPCR-targeted drugs have been developed for a wide range of therapeutic areas, including cardiovascular diseases, neurological disorders, metabolic disorders, respiratory conditions, and more. For example, beta-blockers used to treat hypertension and heart failure target GPCRs called adrenergic receptors, while serotonin reuptake inhibitors (SSRIs) used as antidepressants target serotonin receptors, which are also GPCRs.

Upon reviewing their presentation deck, it is evident that Liminal BioSciences has three promising programs in the early stages of development. These programs show potential across multiple indications and offer a significant multi-billion dollar market opportunity with a clear unmet need. It is apparent that their clinical research across GPCRs made it very enticing for a buyout, from which shareholders benefitted a 135% premium.

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The post Liminal BioSciences (NASDAQ: LMNL) Announces Acquisition Agreement with SALP for 135% Premium first appeared on Micro Cap Daily.

The post Liminal BioSciences (NASDAQ: LMNL) Announces Acquisition Agreement with SALP for 135% Premium appeared first on Micro Cap Daily.

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