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Factor Therapeutics (ASX:FTT) pulls out of LONGMILE transaction
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  • Biotechnology company Factor Therapeutics (FTT) has cancelled its proposed transaction with LONGMILE Veterinary PET Imaging
  • The two companies previously executed a term sheet to acquire products and technologies for veterinary imaging
  • However, Factor Therapeutics had to extend the agreement twice while awaiting feedback on admission to the ASX official list
  • Due to the proposed transaction’s prolonged stay in limbo, the companies have decided to cease negotiations
  • Factor Therapeutics’ shares have been suspended from trading since mid-July 2020, and will remain so until an approved transaction is completed

Biotechnology company Factor Therapeutics (FTT) has cancelled its proposed transaction with LONGMILE Veterinary PET Imaging.

On July 24, 2020, the company announced it had signed a term sheet for a proposed transaction with Bethesda-based Brain Biosciences, otherwise known as LONGMILE. The term sheet was for the acquisition of products and technologies for equine and companion animal veterinary imaging. 

The term sheet agreement between the two companies included a 120-day exclusivity agreement. This allowed Factor Therapeutics to hold off on a binding investment contract until it could complete due diligence, without worrying about other prospective buyers.

However, the proposed transaction has faced numerous hurdles over the last six months. Factor Therapeutics and LONGMILE mutually agreed to extend the exclusivity agreement twice, while Factor Therapeutics awaited feedback on admission to the ASX official list.

The company still has not received any definitive in-principle ASX advice regarding the transaction. In a statement about the development, the company explained its decision to pull out of the transaction. 

“Due to the considerable prolongation of the transaction and changes in business circumstances in the interim, the parties have not been able to finalise acceptable commercial terms,” the statement read.

“As a result, the parties have elected by mutual agreement to cease negotiation, with no further penalty,” it added.

The Board of Factor Therapeutics went on to say that the company is considering all options relating to its future.

Factor Therapeutics’ shares have been suspended from trading since mid-July 2020, and will remain so until an approved transaction is completed. The company must also satisfy all ASX requirements which are necessary to resume trading on the exchange.

FTT by the numbers
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