Drug discovery research and development company Cytopia Ltd
(ASX:CYT) has announced that it has agreed to an all-scrip takeover deal by Toronto based YM BioSciences that values the company at $14 million.
Under the agreement Cytopia shareholders will be offered one YM share for every 11.737 Cytopia shares.
Cytopia option holders will receive YM options at an equivalent ratio.
The deal represents a share price offer of 16.59 cents per Cytopia share, a 58 per cent premium to the company’s last traded price prior to the agreement.
YM is a clinical stage cancer-focused life sciences company with a market cap of $92.6 million.
On successful implementation of the deal, Cytopia shareholders will own around 11 per cent of YM.
The board of Cytopia have recommended shareholders vote in favour of the deal.
Cytopia has posted net losses over the last five years.
