Here’s a convoluted arrangement. Biopharmaceutical company Roivant Sciences has decided to ditch the acquisition of its former subsidiary Immunovant and will make a $200 million strategic investment, instead.
Immunovant went public via Health Sciences Acquisition in 2019. Roivant, meanwhile, is in a $611 million pending merger with Montes Archimedes Acquisition.
Roivant has purchased 17,021,276 shares of Immunovant’s common stock at a price of $11.75 per share, which purchase has been approved by a special committee of Immunovant directors not affiliated with Roivant, according to a press release. This represents approximately a 15% premium to Immunovant’s 20 trading day volume weighted average price. After giving effect to the investment, Immunovant has a pro forma cash balance of approximately $600 million and Roivant has increased its ownership stake in Immunovant from 57.5% to 63.8%, based on Immunovant’s cash balance and share count as of March 31.
Roivants merger with Montes Archimedes would give the combined company a valuation of approximately $5 billion. Read more.
