Mindset Pharma Inc (CSE:MSET, OTCQB:MSSTF) announced that it has agreed to be acquired by Otsuka Pharmaceutical Co, Ltd, through its wholly-owned Otsuka America Inc subsidiary, for about C$80 million in cash.
The drug discovery and development company said each Mindset Pharma shareholder will receive $0.75 in cash for each Mindset share held, representing a 15.4% premium to the closing price of the shares of Mindset Pharma on August 30, 2023.
"We are thrilled to announce this all-cash transaction with Otsuka as we believe it maximizes value and is a great outcome for all Mindset stakeholders," Mindset Pharma CEO James Lanthier said in a statement.
"We believe Otsuka is ideally positioned to maximize the value of the Mindset assets and IP portfolio to the future benefit of patients," he added.
The company noted that holders of outstanding options and warrants to purchase shares of Mindset will receive a cash payment for the 'in-the-money' value, if any, in respect of all vested options and warrants of Mindset.
Mindset Pharma has also agreed to pay a $4 million termination fee in certain circumstances.
The transaction is expected to close on or about October 19, 2023.
Mindset Pharma is a drug discovery and development company focused on creating optimized and patentable best-in-class innovative next-generation psychedelic medicines to treat neurological and psychiatric disorders with unmet needs.
Contact Sean at sean@proactiveinvestors.com