Oceanpine Capital proposes to acquire LakeShore Biopharma for $0.86 per share

BEIJING - LakeShore Biopharma Co., Ltd (NASDAQ:LSB), currently valued at $32.15 million in market capitalization, announced Monday it has received a preliminary non-binding proposal from Oceanpine Capital to acquire all outstanding shares not currently owned by the investment firm for $0.86 per share in an all-cash transaction.

The proposed purchase price represents a 10.3% premium to LakeShore’s closing price on August 15, and an 11.4% premium to the average closing price during the last 15 trading days, according to the company’s statement based on a press release. According to InvestingPro data, the stock has fallen significantly over the past year, with a decline of 84% in total return, and currently trades at $0.78 per share. Analysis suggests the stock may be undervalued at current levels.

Oceanpine Capital, which manages approximately $3.5 billion in assets, stated in its proposal that it intends to fund the transaction with rollover equity and available cash on hand, with no financing conditions attached. The investment firm has engaged White & Case LLP as its international legal advisor.

LakeShore Biopharma’s board of directors has just received the proposal and will review it to determine the appropriate course of action, the company said. No decisions have been made regarding the company’s response.

The biopharmaceutical company, which focuses on developing vaccines and therapeutic biologics for infectious diseases and cancer, cautioned shareholders that there is no assurance any definitive offer will be made or that any transaction will be approved or completed. InvestingPro analysis reveals the company maintains impressive gross profit margins of 82.47%, though it is currently not profitable and is rapidly consuming cash reserves. Subscribers can access 13 additional ProTips and comprehensive financial metrics for deeper analysis.

Following the proposed acquisition, Oceanpine Capital indicated it currently intends for LakeShore’s business to continue operating in a manner generally consistent with its current operations.

LakeShore Biopharma operates in China, Singapore, and the Philippines, and has developed a proprietary immunomodulating technology platform targeting various virus infections.

In other recent news, LakeShore Biopharma Co., Ltd announced it has secured $15 million through a private placement with an institutional investor. This agreement involves the issuance and sale of 16,987,542 ordinary shares at a price of $0.883 per share. Additionally, the company will issue an equal number of warrants, allowing the investor to purchase one ordinary share at an exercise price of $1.079 within a 36-month period. These developments are part of LakeShore Biopharma’s ongoing financial strategies. The private placement is a significant move aimed at bolstering the company’s capital. Investors may find this development noteworthy as it reflects the company’s efforts to strengthen its financial position. This recent transaction underscores LakeShore Biopharma’s commitment to advancing its business objectives.

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