Unsolicited Bids Emerge for CDMO Unit Velocity Bioworks as Valion Hires Banker
VBIO sits 28% above its 52-week low of $0.9.
Summary
Valion Bio has received unsolicited acquisition inquiries for its CDMO subsidiary Velocity Bioworks and has started preliminary talks, retaining a nationally recognized investment bank as financial advisor to its Board to run the review. The company says any deal must preserve its manufacturing access for Entolimod, the drug it is trying to advance, and it will prioritize retaining production rights and continued manufacturing for Entolimod in any Velocity transaction. That matters because Valion ended Q2 with $7.1M net loss, cash down to $2.1M and going concern doubt, and it has since leaned on activist 3i, LP for financing — a sale would be the cleanest source of non-dilutive cash. 3i, LP now holds 46.17% and has pushed hard for board and management changes, so a divestiture fits its stated agenda. No price, buyer or timeline was disclosed, and talks are preliminary — a signed definitive agreement with terms is what would re-rate the stock.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Valion Bio retained a nationally recognized investment bank as financial advisor to its Board and will prioritize retaining production rights and continued manufacturing for Entolimod in any Velocity transaction.
At the time of this announcement, VBIO was trading at $1.15 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $2M. The 52-week trading range was $0.90 to $72.73. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.