Timber Pharmaceuticals, Inc. (NYSE:TMBR) has agreed to be acquired by LEO US Holding, Inc., a wholly-owned subsidiary of LEO Pharma A/S, for a total transaction value of $36 million.
TMBR will receive an initial upfront consideration of $14 million and up to an additional $22 million in contingent value rights (CVRs) payable upon achievement of certain milestones.
The transaction provides Timber stockholders upfront cash consideration and downstream value through contingent value rights.
As part of the transaction, LEO Pharma has agreed to provide Timber with a bridge loan of up to $3.0 million. The payments of the CVRs are subject to certain deductions.
Timber expects the initial amount per share to be paid to Timber stockholders to be approximately $2.62 based on 3.4 million shares of Timber common stock and restricted stock issued and outstanding as of August 20, 2023.
“LEO’s expertise and global footprint make it the best choice to advance and achieve the full potential of Timber’s portfolio of product candidates. We believe that LEO has the potential to establish TMB-001 as the standard of care in the treatment of congenital ichthyosis, a devastating, rare disease,” commented John Koconis, Chairman and Chief Executive Officer of Timber.
The transaction is expected to close in 4Q23. Following completion, Timber will become a privately held company.
Price Action: TMBR shares are trading higher by 103.5% at $2.88 on the last check Monday.
