Jaguar Animal Health Stock Rises on Napo Pharma Merger
Last week Jaguar Animal Health stock was surging by 20% to $1.14 on Friday morning, after the animal health products company announced that it will merge with privately held Napo Pharmaceuticals.As part of the deal Jaguar stockholders will hold approximately 25% of the total outstanding fully diluted equity of Jaguar. The balance of the outstanding fully diluted equity of Jaguar will be held by existing Napo creditors, RSU, option and warrant holders with new convertible debt and equity investors once the deal is complete.
"The board members of both Jaguar and Napo are confident that this merger will enable both companies, through a joint management team, to benefit from the economies of scale of combined manufacturing for various human and animal indications and enhance potential value creation," Jaguar CEO Lisa Conte said.
The deal was first announced about two months ago, the financial terms of the merger include an approximate 3-to-1 Napo-to-Jaguar value ratio to calculate relative ownership of the combined entity.
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