Biotech Micro-Cap Enters Transformational LOI, Shares Halted On News - InvestingChannel

Biotech Micro-Cap Enters Transformational LOI, Shares Halted On News

After a lackluster last few years on the mergers and acquisition (M&A) front, the end of 2024 appears to be alive and well with business activity heating up in dramatic fashion. A drop in interest rates, along with a roaring stock market has sped up deal making among companies.

Today, Awakn Life Sciences Corp. (CSE: AWKN) (OTCQB: AWKNF), a clinical-stage biotechnology company developing therapeutics for substance use and mental health disorders, announced that it has entered into a binding letter of intent with Graft Polymer (UK) PLC, pursuant to which Graft would acquire all of the issued and outstanding common shares in the capital of the Company.

Graft is a biotechnology company incorporated in the United Kingdom with its ordinary shares listed on the London Stock Exchange under the symbol “GPL” and is currently focused on developing intellectual property and co-developing therapeutics for mental health and substance use disorders. Anthony Tennyson, the Chief Executive Officer and a director of Awakn, was also appointed as Graft’s part-time Chief Executive Officer and to its board of directors in May 2024.

Under the terms of the LOI, each Awakn shareholder will receive 46.67 ordinary shares in the capital of Graft for each one (1) Common Share held.

The number of Consideration Shares, based on the latest valuation of Graft on the LSE, is 2,074,378,592, resulting in a total acquisition price of $8,890,194, using an exchange rate of 0.56 GBP:CAD. This results in the Company’s Common Shares being valued at $0.20 per Common Share, which is a 110.54% premium to the closing share price of Awakn’s Common Shares on the Canadian Securities Exchange on December 13, 2024, and an 88.69% premium to a 90-day VWAP.

Canadian and U.S. listed shares of Awakn are currently halted by the Canadian Investment Regulatory Organization (CIRO) but based on bid / ask spreads and the LOI share price premiums from this announcement, are likely to soar once the trading halt is lifted.

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