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InsideArbitrage Event Driven Monitor – June 21, 2023

  • June 21, 2023
Subscribe to receive our Event Driven Monitor by email every morning before the market opens. Editor’s Note: In our last Event Driven Monitor, we mentioned that Surface Oncology (SURF) was to be acquired by Coherus BioSciences (CHRS) for $40 million or $5.2831 per share in cash. This was incorrect. The way the press release announcing the deal was worded was confusing. We decided to hold off on adding the deal to our Merger Arbitrage Tool until after I had had chance to review the merger agreement. Unfortunately we forgot to remove the update from the Event Driven Monitor. After reviewing the merger agreement, it became clear that this was an all stock deal with a few special conditions. Section 8.3 (t) on Page 78 of the merger agreement states: (t) “Exchange Ratio” means the quotient (rounded down to four decimal places) obtained by dividing (i) the quotient obtained by dividing (x) the Company Valuation by (y) the Parent Stock Price by (ii) the Company Outstanding Shares; On the same page, Company Valuation is defined as: (n) “Company Valuation” means an amount equal to Company Net Cash, plus $40,000,000; Looking at the last quarter’s balance sheet, Surf had about $80 million...

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