11:20 AM EDT, 10/23/2024 (MT Newswires) -- Lumos Pharma ( LUMO ) said Wednesday it has entered into a definitive agreement to have 100% of its outstanding commmon stock acquired by a unit of Double Point Ventures.

Double Point Ventures LLC will purchase the stock for $4.25 per share in cash and one non-transferable, unsecured Contingent Value Right per share payable on achievement of certain milestones. As there can be no assurance any payments will be made with respect to the CVRs, Lumos said the total equity value of the acquisition is roughly $38 million.

The Double Point unit intends to fund the aquisition from its existing cash resources, Lumos said.

The board of directors of the company approved the transaction, which is expected to be closed before the end of this year, Lumos added. Upon deal completion, Lumos Pharma ( LUMO ) said it will become a wholly owned unit of Double Point, and operate as a standalone business.

Shares of the biopharmaceutical company rose nearly 7% in recent Wednesday trading.

Price: 4.38, Change: +0.28, Percent Change: +6.83