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Investing.com -- Shares of Keros Therapeutics (NASDAQ:KROS) surged 14% today following the company's announcement that it is exploring strategic alternatives to maximize stockholder value. The clinical-stage biopharmaceutical company, known for its work on treatments related to the transforming growth factor-beta (TGF-ß) family of proteins, has formed an independent Strategic Committee to consider a range of options. These may include a sale, other business combination transactions, continued investment in the company's pipeline, or a return of excess capital to stockholders.
The move comes as Keros also adopted a limited-duration stockholder rights plan in response to rapid accumulations of its common stock by investors seeking to influence control of the company. This plan aims to ensure fair participation in the strategic review process and prevent any group from gaining control without offering a proper premium to all stockholders.
Jean-Jacques Bienaimé, Lead Independent (LON:IOG) Director at Keros, stated that while the strategic review is underway, the company remains committed to executing its strategy. There is no set deadline for the review's completion, but Keros plans to provide an update within 60 days.
The rights plan, effective immediately, is designed to deter any entity or person from acquiring a beneficial ownership of 10% or more of Keros' outstanding common stock without board approval. The plan includes flip-over and exchange features and will expire on April 9, 2026, unless redeemed or exchanged earlier by the company.
In connection with this news, Truist Securities VP Srikripa Devarakonda reiterated a Buy rating on Keros stock with a $25.00 price target, commenting, "We believe this could be favorable for Keros shares. We remind investors that Keros has ~$18/sh in cash and our PT of $25 reflects cash + the ongoing partnership with Takeda (TAK, NR) and no value to the pipeline, which we believe could add to valuation."
Keros has engaged Goldman Sachs & Co (NYSE:GS). LLC as its financial advisor and Cooley LLP as legal counsel to assist with the strategic review process. Additional details about the rights plan will be disclosed in a Form 8-K to be filed with the U.S. Securities and Exchange Commission.
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