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Re: DewDiligence post# 246215

Monday, 07/17/2023 1:36:18 PM

Monday, July 17, 2023 1:36:18 PM

Post# of 249979
PRDS goes private @$2.19/sh cash plus CVR:

Pardes Biosciences…today announced that it has entered into a definitive merger agreement whereby MediPacific, Inc. (Purchaser) will acquire Pardes for a price per share of not less than $2.02 in cash and an additional cash amount of not more than $0.17 per share, with the final price per share being based on the amount of the Company’s net cash at closing, plus a non-tradeable contingent value right (the CVR) associated with any future monetization of its COVID-19 antiviral portfolio and related intellectual property.

Inasmuch as the CVR for PRDS’ COVID program will likely amount to nil, PRDS shareholders are receiving the value of the company’s cash on hand and nothing more. PRDS might have done better with a reverse-merger, where the company’s Nasdaq listing would presumably have garnered some value. That PRDS did not do a reverse-merger can probably be chalked up to the fact that the acquiring private-equity company in the above transaction is affiliated with a PRDS director and major shareholder.

PRDS has been a shell company since the COVID program was discontinued three months ago (; ).

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