Trillium Therapeutics Inc. [NASDAQ: TRIL] has inked an acquisition agreement with Pfizer Inc. [NYSE: PFE]. As per the acquisition agreement, Trillium will be bought by Pfizer Inc. The planned purchase of Trillium is to be executed by way of a legal plan of arrangement under the Business Corporations Act (British Columbia).
Pfizer believed that the acquisition of Trillium will bolster its dedication to chase scientific discoveries with the addition of potentially best-in-class molecules to its groundbreaking pipeline. The suggested purchase of Trillium develops on its strong track record of leadership in Oncology. It will improve its hematology portfolio as the firm is struggling to enhance results for people living with blood cancers around the world.
Shares of Trillium Therapeutics Inc. [NASDAQ: TRIL] skyrocketed 192.61% at the time of writing on Monday’s premarket trading session. Furthermore, previously in September 2020, as part of the Pfizer Breakthrough Growth Initiative (PBGI), Pfizer spent $25 million in Trillium. Additionally, Pfizer has dedicated itself to providing up to $500 million in total funding to the PBGI.
As per the terms of the agreement, Pfizer will buy all outstanding shares of Trillium not already possessed by Pfizer. Furthermore, the firm will buy shares for an implied equity value of $2.26 billion, or $18.50 per share, in cash. This is equivalent to a 118% premium to the 60-day weighted average price for Trillium.
Additionally, the execution of the deal is dependent on customary closing conditions. The terms include the authorization of 66⅔% of the votes cast by Trillium shareholders. Furthermore, it also includes authorization of 66⅔% of the votes cast by Trillium shareholders.