A lawsuit was filed for investors in shares of Aratana Therapeutics, Inc. (NASDAQ: PETX) in connection with the proposed takeover.
San Diego, CA -- (SBWIRE) -- 06/14/2019 -- The Shareholders Foundation announces that an investor, who currently holds shares of Aratana Therapeutics, Inc. (NASDAQ: PETX), filed a lawsuit against the takeover of Aratana Therapeutics, Inc.
Investors who purchased shares of Aratana Therapeutics, Inc. (NASDAQ: PETX) and currently hold any of those NASDAQ: PETX shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ: PETX stockholders by agreeing to sell Aratana Therapeutics, Inc. cheaply via an unfair process.
On April 26, 2019, Aratana Therapeutics (NASDAQ: PETX) announced it has signed an agreement to be acquired by Elanco Animal Health (NYSE: ELAN). Subject to the terms of the agreement, upon the closing of the transaction, Aratana stockholders will receive 0.1481 share of Elanco common stock and one contingent value right (CVR) for each share of Aratana common stock. Based on the exchange ratio and the closing prices on April 24, 2019, Aratana's stockholders would receive Elanco shares equivalent to an implied value of $4.75 per Aratana share. The CVR of $0.25 in cash per Aratana share shall be granted to Aratana stockholders as of the closing date and paid if capromorelin achieves certain sales levels on or before the end of 2021.
However, the plaintiff claims that the proposed consideration NASDAQ: PETX shareholders will receive is grossly inadequate and undervalues Aratana Therapeutics, Inc. Indeed, shares of Aratana Therapeutics, Inc. (NASDAQ: PETX) traded in the open market in November over $7.00 per share. Aratana Therapeutics, Inc. reported that its annual Total Revenue rose from $25.57 million in 2017 to $35.41 million in 2018 and that its Net Loss declined from $47.51 million in 2017 to $14.72 million in 2018. In addition, the plaintiff alleges that the process is also unfair NASDAQ: PETX stockholders.
Those who are current investors in Aratana Therapeutics, Inc. (NASDAQ: PETX) shares have certain options and should contact the Shareholders Foundation.
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