Lumos Pharma Acquired by Double Point Ventures in Successful Tender Offer
Deal News | Dec 12, 2024 | Globenewswire
Lumos Pharma, a biopharmaceutical company focused on therapies for rare diseases, and Double Point Ventures, a venture capital firm, have announced the completion of a tender offer and subsequent acquisition of Lumos Pharma. The transaction was finalized at a purchasing price of $4.25 per share, equating to an equity value of approximately $38 million. The offer included contingent value rights (CVRs) linked to Lumos Pharma’s future revenue from LUM-201, its growth hormone secretagogue under Phase 2 trials. Having received around 75.62% of shares through tender, Double Point Ventures proceeded with the merger under Delaware General Corporation Law without requiring a further stockholder vote. Consequently, Lumos Pharma will continue operations as a standalone unit under Double Point Ventures. Piper Sandler LLC served as the financial advisor, and legal counsel was provided by Cooley LLP and Wilson Sonsini Goodrich & Rosati, P.C. The stock, which will no longer trade on NASDAQ, will be delisted, marking the conclusion of the transaction.
Sectors
- Biotechnology
- Venture Capital
Geography
- United States – The acquisition involves companies based in the United States, specifically in Texas and Connecticut.
Industry
- Biotechnology – The industry relevant to Lumos Pharma is biotechnology, given its focus on developing biopharmaceuticals for rare diseases.
- Venture Capital – Double Point Ventures is classified under venture capital, emphasizing investment in health and life sciences companies.
Financials
- $4.25 per share – The purchase price per share offered to Lumos Pharma shareholders.
- $38 million – The total equity value of the acquisition.
- 7.6% – Premium to Lumos Pharma's closing share price as of October 22, 2024.
- 10.5% – Premium to Lumos Pharma's 30-trading-day volume weighted average price as of October 22, 2024.
- 6,544,417 shares – The number of Lumos Pharma shares validly tendered into the offer.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Lumos Pharma, Inc. | Target | Company | A clinical stage biopharmaceutical company focused on developing and commercializing therapeutics for rare diseases. |
| Double Point Ventures LLC | Bidding Company | Company | A venture capital fund dedicated to healthcare and life sciences companies. |
| Piper Sandler LLC | Financial Advisor | Company | Provided exclusive financial advisory services to Lumos Pharma. |
| Cooley LLP | Legal Advisor | Company | Served as legal counsel to Lumos Pharma. |
| Wilson Sonsini Goodrich & Rosati, P.C. | Legal Advisor | Company | Acted as legal counsel for Lumos Pharma. |
| Foley & Lardner LLP | Legal Advisor | Company | Provided legal counsel to Double Point Ventures. |