- Cynata shares have jumped to 40¢ premium after it returned from a requested trading halt
- Shares changed from a low of $1.23 to a high of $1.60
- Cynata has received a indicative, non-binding and conditional proposal from Japanese pharmaceutical company Sumitomo Dainippon Pharma
Cynata shares have rocketed to a 40¢ premium today after shares returned from a requested trading halt.
This trading halt was requested so the company could respond to an ASX Price Query after the market close on Tuesday July 16.
The Price Query was triggered by a change in the price of shares from a low of $1.23 to a high of $1.60 over the five trading days from July 16.
However, according to Cynata’s announcement today it doesn’t believe the trading halt was the cause of the rise.
It later revealed it has received an indicative, non-binding and conditional proposal from Sumitomo Dainippon Pharma regarding a possible purchase at the price of $2 cash per share.
The release has advised the Cynata Board has decided to grant non-exclusive due diligence access to Sumitomo.
Management of both companies advised that ongoing negotiations are incomplete and any entry into a binding transaction by either company remains subject to a number of conditions.
Before negations began it was warned that an agreement may not be reached or that the proposal will be implemented and advised shareholders not to take any action until it was confirmed.
Sumitomo Dainippon Pharma is a pharmaceutical company based in Japan with headquarters in Chou-ku, Osaka.
The original Dainippon Pharmaceuticals was established in 1885 by a graduate from Japan’s first medical school. It was initially set up as a wholly private owned company which was invested by a number of people in Tokyo and Osaka.
Operations also began in 1885 when equipment and materials, such as anti-asthma drugs and ephedrine, were imported from Germany.
However, another origin is Sumitomo Pharmaceuticals, incorporated in 1984, is a subsidiary of Sumitomo Chemical.
But on October 1 2005, Dainippon and Sumitomo merged to create Sumitomo Dainippon Pharma.
Cynata Therapeutics is an Australian stem cell and regenerative medicine company that is currently in the process of developing its therapeutic stem cell technology, Cymerus.
Cymerus is the process of generating cell-based products from intermediate cells which are derived from induced pluripotent stem cells. Cynata is currently focused on the production of mesenchymal stem cells (cells that can differentiate into a variety of cell types).
This is important because the mesenchymal stem cells can be used for a variety of donations. But limitations occur such as the variability between donors and the scarcity of mesenchymal stem cells in adult tissue.
Cynata has informed the market it will keep them updated with any changes and disclosure requirements.