SAN JOSE, CA / ACCESSWIRE / May 23, 2023 / Earlier today Biomed Industries, Inc. issued a letter to the Board of Directors of Neoleukin Therapeutics, Inc. (NASDAQ:NLTX).
The letter described a proposal to acquire all the company's common stock for $1.60 per share which represents an 80% premium on the average price of $0.88 over the past 10 days, in which one share of Neoleukin will be exchanged for $1.00 in cash plus $0.60, or 0.075 share of Biomed Industries, Inc. As Neoleukin has 42,818,346 outstanding shares, Biomed's proposed offer has an enterprise value at $68.5 million.
A full copy of the letter can be found below:
Vice President of Biomed Industries, Inc.
Biomed Industries, Inc.
May 24, 2023
To: The Board of Directors
Neoleukin Therapeutics, Inc.
188 East Blaine, Suite 450
Seattle WA 98102
Dr. Sarah Noonberg
Biomed Industries, Inc. is pleased to present a tender offer to acquire all the outstanding Common Stock of Neoleukin Therapeutics, Inc. ("Neoleukin" or the "Company") at $1.60 per share which represents an 80% premium on the average price of $0.88 over the past 10 days, in which one share of Neoleukin will be exchanged for $1.00 in cash plus $0.60 or 0.075 share of Biomed Industries, Inc. ("Biomed")
Below is a brief summary of benefits of which a merger of Neoleukin and Biomed would add significant value for each of our respective businesses and shareholders:
Biomed's Phase 2B and Phase 3 drug candidates for the treatment of Alzheimer's disease valued at approximately $600 million will increase the share price of the combined enterprise.
A pathway to continue development of Neoleukin's current pipeline and to save considerable time and cost in recruiting and managing ongoing clinical trials of Neoleukin's drugs though Biomed's AI platform.
We believe our offer is very compelling as it provides Neoleukin's shareholders with a highly certain and significant return and the ability to obtain liquidity for their shares, as well as the upside potential of Biomed.
We can complete customary diligence and negotiate definitive documentation within 60 days.
We believe our Proposal is in the best interests of all shareholders and believe it offers shareholders a significantly more attractive risk/reward scenario than the Board's current plan.
Please be aware that this Proposal is an expression of interest only, and we reserve the right to withdraw or modify our Proposal in any manner. No legal obligation with respect to a transaction shall arise unless and until execution of mutually acceptable definitive documentation.
Should you have any questions, please do not hesitate to contact us. We look forward to hearing from you.
Lloyd L. Tran
Chairman and CEO
About Biomed Industries, Inc.:
Biomed Industries, Inc.™ is a bio-pharmaceutical company committed to the development and commercialization of new drug therapeutics for unmet needs.
Biomed Industries, Inc. is the parent company of Biomed Pharmaceuticals, Inc., NeuroActiva, Inc. and BiomedAI, Inc., Biomed Green LLC, Biomed Digital LLC. and MedAware Systems, Inc. Biomed's team has discovered a new family of drugs for the treatment and prevention of Alzheimer's disease.
For more information, please contact
SOURCE: Biomed Industries, Inc.