Jan. 27 at 3:15 PM
$LSTA This is now an arbitrage play. Per the binding term sheet, Kuva is obligated to pay:
•
$4 upfront
•
$1 CVR if the certepetide rights in China revert back to LSTA from Qilu
•
$1 CVR when Kuva files an NDA for any indication
LSTA confirmed today that they terminated the license agreement with Qilu and that the rights in China will revert back to LSTA. So we know that one of the CVRs will pay out. Which puts the BO price at
$5. LSTA is still trading ~
$4.50. Market hasn't fully digested this yet.
Right now the biggest risk is if this deal falls through. They have until Feb 27 to sign a definitive purchase agreement.