FAST NEWS: Gracell shareholders approve merger with AstraZeneca
The latest: Gracell Biotechnologies Inc. (GRCL.US) announced Tuesday that its shareholders approved the company’s sale to AstraZeneca (AZN.L) at an extraordinary general meeting on Feb. 19.
Looking up: Gracell’s merger with a major pharmaceutical company is an attractive exit for its investors, as weak market sentiment is makings it more difficult for Chinese drug companies to independently raise new funds.
Take Note: Upon completion of the merger, which is expected around Feb. 22, Gracell will become a private company and its American depositary shares (ADSs) will no longer be listed or traded on any stock exchange.
Digging Deeper: Gracell was founded in 2017 to develop innovative cell therapies to treat cancer. It listed on the Nasdaq in January 2021, selling its ADSs for $19 apiece and raising $200 million. The company’s share price fell more than 90% from that level last year as Chinese stocks continued falling out of favor with U.S. investors, making it difficult for Gracell and its peers to raise new funds to continue their work. Last December, AstraZeneca offered to buy out Gracell for $10 per ADS, in a deal worth up to $1.2 billion.
Market Reaction: Gracell’s shares rose 1% to close at $10.24 on Tuesday, near the upper end of its 52-week range.
Translation by A. Au
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