By Chris Wack
QSAM Biosciences shares were up 37% at $7 after the company signed a non-binding merger term sheet with Telix Pharmaceuticals (US), a subsidiary of Telix Pharmaceuticals Ltd.
The stock hit its 52-week high of $7.50 earlier in the session, and is up 52% in the past 12 months.
Upon signing of the term sheet, Telix has agreed to pay the QSAM a $2 million pre-closing collaboration and option fee to advance its development efforts based on mutually agreed goals and to provide 60 days of exclusivity pending completion of diligence and execution of a definitive acquisition agreement.
Among the material terms still subject to diligence and definitive agreements, Telix is expected to pay a total of $33.1 million in Telix stock and up to $90 million in contingent clinical and commercial milestone payments through a Contingent Value Rights structure.
If the acquisition doesn’t close, the collaboration fee will be converted to company stock at a price of $6.70 a share.
Write to Chris Wack at [email protected]
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