- Gurnet Point subsidiary Lough Ree Technologies is set to acquire all of the share capital of Innocoll Holdings (NASDAQ:INNL) for $1.75 in cash plus a contingent value right (CVR) to be issued by Gurnet. The CVR will pay out a maximum fo $4.90 based on the achievement of certain milestones.
- Under Irish law, the deal must be approved by Innocoll shareholders who own at least 75% of the company.
- The CVR will pay $0.70 in cash on or before December 31, 2018 if the FDA approves XARACOLL for the treatment of postsurgical pain following abdominal hernia repair.
- It will pay $1.33 in cash on or before December 31, 2018 if the FDA approves XARACOLL for the treatment of postsurgical pain following soft tissue repair.
- On or before December 31, 2019, the CVR will pay $1.00 in cash if the FDA approves XARACOLL for the treatment of postsurgical pain following hard tissue repair and $0.60 in cash after the end of 2019 but before June 30, 2020 if the approval occurs during this timeframe.
- The CVR will pay $1.87 in cash if global sales of XARACOLL exceed $60M in four consecutive quarters ending on or prior to December 31, 2019 and $1.00 in cash if global sales exceed $60M in any four consecutive quarters ending on or prior to March 31, 2020.
- INNL closed yesterday at $2.19. Shares are down 2% premarket on light volume.
Original article