Liminal BioSciences Stock Gains 40% Today - Here's Why?

Liminal BioSciences Inc LMNL shares are trading higher after Structured Alpha, a fund managed by Thomvest Asset Management, agreed to acquire the company.

Under the terms of the Arrangement Agreement, Liminal BioSciences shareholders will receive $8.50 in cash per common share, which represents a premium of approximately 135% over Liminal BioSciences' closing share price on April 4, which was the last full trading day before the public announcement of Structured Alpha's initial non-binding proposal.

The agreement is $1.00 per share, more than Structured Alpha's initial non-binding proposal.

The Special Committee engaged BMO Capital Markets to provide an opinion and an independent formal valuation. 

BMO Capital Markets rendered its opinion to the Special Committee regarding fairness from a financial point of view.

BMO Capital Markets also prepared a formal valuation of the common shares of Liminal BioSciences, which indicated a fair market value range for a Liminal BioSciences common share, as of July 11, 2023, of $5.00-$15.00. 

Price Action: LMNL shares are up 40.40% at $8.31 on the last check Wednesday.