Cerulean Pharma Inc (NASDAQ: CERU)
Cerulean Pharma is having an interesting day in the pre-market hours today. In fact, the stock is halted at the moment. The halt follows news of a definitive purchase agreement, which essentially gives majority ownership of the company to a new company. Below, we'll talk about what we're seeing, why, and what we'll be watching for with regard to CERU ahead.
What We're Seeing From CERU
As mentioned above, Cerulean Pharma is having an interesting start to the day today. In the early pre-market hours, the stock was trading in the red, and it has stayed there since. However, at 8:00, the stock was halted as news started to break. Currently (8:25), CERU remains halted at $3.25 per share after a loss of $0.07 per share (2.11%) thus far today.
Why The Stock Was Halted
First and foremost, we need to give credit where credit is due. Our partners at Trade Ideas were the first to inform us of the halt on CERU. As soon as we received the alert, we started digging to see why the stock was halted. It didn't take long to dig up the story. Ultimately, the halt is the result of a sale of stock that results in new majority ownership of the company.
In a press release this morning, it was announced that Daré Bioscience, Inc., a privately-held pharmaceutical company, has entered into a definitive stock purchase agreement. As a result of the agreement, equity holders in Daré Bioscience, Inc. will become the majority owners of Cerulean. In a statement, Christopher D. T. Guiffre, President and CEO at CERU, had the following to offer:
“Cerulean conducted an extensive review of strategic alternatives with the goal of maximizing value for our stockholders... we believe the Daré transaction, in conjunction with the asset sales, achieves this goal and provides Cerulean stockholders with an exciting opportunity in women's health under an experienced leadership team. Based on Daré's current projections, with proceeds from the sale of Cerulean's assets, we believe the combined company will be well funded to advance Ovaprene through the completion of a postcoital proof of concept study that is expected to be a value inflection point and is expected to commence following the closing of this transaction.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CERU. In particular, we'll be watching the transaction mentioned above as it evolves. We'll continue to follow the story closely and bring the news to you as it breaks!
Update 8:33: CERU reopens quite a bit lower. In fact, the stock is currently trading at $1.45 per share after a loss of 56.33% thus far today.
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