Aerovate announces $69.6 million special dividend

WALTHAM, Mass. - Aerovate Therapeutics, Inc. (NASDAQ:AVTE), currently valued at $73 million in market capitalization, has declared a special cash dividend of $69.6 million, or an estimated $2.40 per share, in relation to its upcoming merger with Jade Biosciences, Inc. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 20.9x, indicating robust short-term financial health. The dividend will be payable to stockholders on record as of April 25, 2025, with the payment date set for April 29, 2025.

This dividend corresponds to Aerovate's common stock, which currently has 28,985,019 shares outstanding. The merger with Jade Biosciences is expected to close around April 28, 2025, subject to approval by Aerovate's stockholders and other closing conditions outlined in the merger agreement dated October 30, 2024. The stock, trading at $2.49, has seen a significant decline of 91% over the past year, though it has shown signs of recovery with a 23% gain over the last six months.

Aerovate has indicated that it does not have current or accumulated earnings and profits as defined by Section 312 of the Internal Revenue Code. Consequently, the dividend is anticipated to be treated as a return of capital for tax purposes. The distribution of the cash dividend is contingent upon the successful completion of the merger.

The company's stockholders are scheduled to vote on the merger at a special meeting set for the morning of Monday, April 16, 2025. If stockholders need assistance voting their shares or have questions regarding the special meeting, they are advised to contact Aerovate's proxy solicitor, Innisfree M&A Incorporated.

Aerovate Therapeutics is a biotech company focused on treating rare cardiopulmonary diseases, while Jade Biosciences specializes in developing therapies for autoimmune diseases. Jade's lead asset, JADE-001, is poised to enter human trials in the latter half of 2025 for the treatment of IgA nephropathy. For deeper insights into Aerovate's financial health and additional analysis tools, investors can access more than 10 exclusive tips and comprehensive financial metrics through InvestingPro.

The information in this article is based on a press release statement from Aerovate Therapeutics.

In other recent news, Aerovate Therapeutics, Inc. has announced plans to issue a cash dividend to its stockholders ahead of its merger with Jade Biosciences, Inc. The dividend is anticipated to be between $67.6 million and $69.6 million, depending on the company's net cash position at the merger's completion. The exact amount and official declaration of the cash dividend are pending approval from Aerovate's board of directors, with an announcement expected later this month. This dividend payment is set to align with the merger's closing, which requires stockholder approval and other customary conditions.

Aerovate's stockholders will vote on the merger at a special meeting on April 16, 2025, with the merger expected to finalize by April 30, 2025, assuming all conditions are met. The merger is a strategic move to combine Aerovate's expertise in rare cardiopulmonary diseases with Jade's focus on autoimmune disease therapies. Jade's lead asset, JADE-001, is preparing for a first-in-human trial in the latter half of 2025. Aerovate's announcement includes a standard caution that forward-looking statements are subject to risks and uncertainties, emphasizing that actual results may differ if assumptions are incorrect or unforeseen risks arise.

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