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CEL-SCI Corporation Makes Public Offer to Acquire Molecular Biosystems, Inc.

Strategic Insights

— 1 min read

CEL-SCI Corporation, a developer of Cancer Immuno-Therapy Products, has announced that it has sent a letter to Dr. Bobba Venkatadri, CEO of Molecular Biosystems, Inc. (MBI), stating its intention to acquire MBI at a price of $0.76 per share. This offer represents a significant premium over the price offered by Alliance Pharmaceutical Corporation, which acquired MBI at a price of less than $0.55 per share. CEL-SCI's offer is contingent upon the approval of MBI's shareholders and will be made public to ensure that shareholders are aware of the option.

Key Takeaways:

  • CEL-SCI Corporation has made a public offer to acquire Molecular Biosystems, Inc. (MBI) at a price of $0.76 per share.
  • The offer represents a significant premium over the price offered by Alliance Pharmaceutical Corporation, which acquired MBI at a price of less than $0.55 per share.
  • CEL-SCI's offer is contingent upon the approval of MBI's shareholders.
  • The acquisition would result in CEL-SCI Corporation issuing $14.3 million in common stock to MBI shareholders.
  • The outcome of this acquisition would depend on the decision of MBI's shareholders, with CEL-SCI expecting that the higher price and upside potential of the combined company make this a compelling offer.
  • The prospectus and registration statement for this acquisition will be filed with the Securities and Exchange Commission.

Statistics:

  • The offer price of $0.76 per share represents a premium of 38% over the price offered by Alliance Pharmaceutical Corporation.
  • The acquisition would result in CEL-SCI Corporation issuing 19,474,419 shares of common stock to MBI shareholders.
  • The value of the combined company would be approximately $25 million, with CEL-SCI solely responsible for the common stock.
  • The acquisition offer is contingent upon 50% of MBI shareholders approving the deal.

Sources:

  • CEL-SCI Corporation letter to Dr. Bobba Venkatadri, CEO of Molecular Biosystems, Inc. dated October 23, 2002.
  • Press Release from CEL-SCI Corporation dated October 24, 2002.
  • Registration statement from the Securities and Exchange Commission (SEC) relating to the proposed acquisition of Molecular Biosystems, Inc. (OTC Bulletin Board: MBIO).
  • American Stock Exchange Composite Tape for the trading days immediately preceding the date prior to the closing of this transaction.

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