Echo Lake Capital Offers to Acquire Quince Therapeutics, Inc.
- Offers
$1.60 per share in cash - Offer represents
90% premium to yesterday's closing price - Stock currently trades below its current cash and investments balance of
$2.55 per share - Company also has other assets including earnouts and NOLs
- Company is not developing or selling any drugs
- Offer not contingent on outside financing
NEW YORK, NY / ACCESSWIRE / March 21, 2023 / Earlier today Echo Lake Capital issued a letter to the Board of Directors of Quince Therapeutics, Inc. (NASDAQ:QNCX). The letter described a proposal to acquire all the company's common stock for
A full copy of the letter can be found below:
CONTACT:
Ephraim Fields
ef@echolakecapital.com
####
March 21, 2023
To The Board Of Directors:
David Lamond
Dirk Thye
June Bray
Philip Low
Margaret McLoughlin
Una Ryan
Christopher Senner
Echo Lake Capital is pleased to submit this proposal (the "Proposal") under which we would acquire all the outstanding Common Stock of Quince Therapeutics, Inc. ("Quince" or the "Company") we do not own for a price of
Our Proposal represents a premium of
As one of your largest shareholders we believe your stock is severely undervalued. The Company currently has (i) approximately
Unfortunately, we believe it will be extremely difficult for the Board to significantly shrink this valuation gap because Quince (i) has an uncertain future since the company is not marketing or developing any products, (ii) is a tiny company with a limited institutional following, and (iii) has historically disappointed investors and currently lacks credibility in the investment community. We note that the Company's stock price is down
We believe our Proposal is in the best interests of all shareholders and believe it offers shareholders a significantly more attractive risk/reward scenario than the Board's current plan. Because we so strongly believe investors will favor a sale of the Company, we highly encourage you not to pursue any significant transactions (besides the out-licensing of NOV004) while our Proposal is outstanding.
Please be aware that this Proposal is an expression of interest only, and we reserve the right to withdraw or modify our Proposal in any manner. No legal obligation with respect to a transaction shall arise unless and until execution of mutually acceptable definitive documentation.
Should you have any questions, please do not hesitate to contact us. We look forward to hearing from you.
Sincerely,
Ephraim Fields
Echo Lake Capital
SOURCE: Echo Lake Capital
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https://www.accesswire.com/744766/Echo-Lake-Capital-Offers-to-Acquire-Quince-Therapeutics-Inc