Elevation Oncology agrees to be acquired by Concentra

Shares of USA-based Elevation Oncology (Nasdaq: ELEV) leapt more than 20% to $0.38, on the news that it has accepted a takeover bid from Concentra Biosciences, a vehicle controlled by hedge fund Tang Capital Partners, an investment firm focused on buying struggling biotechs and shutting them down.

Concentra is offering $0.36 in cash per share of Elevation common stock, plus one non-tradeable contingent value right (CVR), which represents the right to receive: (i) 100% of the closing net cash in excess of $26.4 million; and (ii) 80% of any net proceeds received within five years following closing from any disposition of EO-1022 that occurs within one year following closing, each pursuant to the contingent value rights agreement.

The Elevation board of directors has unanimously determined that the acquisition by Concentra is in the best interests of all Elevation stockholders and has approved the merger agreement and related transactions.