By Chris Wack
Infinity Pharmaceuticals said Monday that it has ended its merger agreement with MEI Pharma after MEI couldn't get stockholder approval of the deal.
The biotechnology company said MEI didn't obtain stockholder approval for the merger with Infinity at a special meeting Sunday, nor could MEI obtain approval for an adjournment of the special meeting.
In the process of attempting to obtain approval for the merger, which the MEI board supported, MEI was forced to contend with an unsolicited public proposal to acquire MEI by certain activist stockholders, who launched a public campaign to buy MEI at a significant discount to its cash on hand.
In an effort to conserve resources and preserve value for stockholders, Infinity's board and management team expect to undertake a series of cost-saving measures.
Infinity provided a conditional notice of termination to MEI indicating that it was terminating the merger agreement if MEI didn't obtain stockholder. As a result, Infinity may be entitled to reimbursement of certain expenses and fees of $1 million from MEI.
Infinity has the potential to receive an additional $4 million termination fee from MEI under certain circumstances outlined in the joint proxy statement/prospectus relating to the merger.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
July 24, 2023 08:49 ET (12:49 GMT)
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