Private equity outfit Gurnet Point to take out Innocoll for $1.75 and CVR

|About: Innocoll (INNL)|By:, SA News Editor

Gurnet Point subsidiary Lough Ree Technologies is set to acquire all of the share capital of Innocoll Holdings (NASDAQ:INNL) for $1.75 in cash plus a contingent value right (CVR) to be issued by Gurnet. The CVR will pay out a maximum fo $4.90 based on the achievement of certain milestones.

Under Irish law, the deal must be approved by Innocoll shareholders who own at least 75% of the company.

The CVR will pay $0.70 in cash on or before December 31, 2018 if the FDA approves XARACOLL for the treatment of postsurgical pain following abdominal hernia repair.

It will pay $1.33 in cash on or before December 31, 2018 if the FDA approves XARACOLL for the treatment of postsurgical pain following soft tissue repair.

On or before December 31, 2019, the CVR will pay $1.00 in cash if the FDA approves XARACOLL for the treatment of postsurgical pain following hard tissue repair and $0.60 in cash after the end of 2019 but before June 30, 2020 if the approval occurs during this timeframe.

The CVR will pay $1.87 in cash if global sales of XARACOLL exceed $60M in four consecutive quarters ending on or prior to December 31, 2019 and $1.00 in cash if global sales exceed $60M in any four consecutive quarters ending on or prior to March 31, 2020.

INNL closed yesterday at $2.19. Shares are down 2% premarket on light volume.