NASHVILLE, TN - Revance Therapeutics, Inc. (NASDAQ:RVNC), a biotechnology firm specializing in pharmaceutical preparations, has announced a further delay in the commencement of a tender offer for all its outstanding shares. The offer is part of an ongoing merger agreement with Crown Laboratories, Inc. and Reba Merger Sub, Inc., collectively referred to as the Buyer Parties.
The tender offer, which was initially set to begin by November 26, 2024, under the terms of the August 11, 2024 merger agreement, has been postponed to November 29, 2024, or another mutually agreed upon date. This extension was agreed upon by Revance and the Buyer Parties on Tuesday, due to ongoing discussions that could lead to further delays or modifications in the merger terms, including offer price.
This is not the first extension; a prior delay was reported in a Form 8-K filed on November 19, 2024. The waiver related to the latest extension has been filed with the Securities and Exchange Commission and is incorporated by reference into the current report.
The merger agreement has been a subject of much anticipation, with the potential for competing offers, the satisfaction of closing conditions, and the realization of anticipated synergies and benefits under scrutiny. The transaction's expected tax treatment and its impact on both companies' operations and business relationships are also critical considerations.
The announcement of the tender offer and the merger could affect Revance's business relationships, including those with partners and customers. The merger is contingent on several factors, including how many stockholders will tender their shares, the possibility of competing offers, and the ability to meet closing conditions within the expected timeframe.
Revance's discussions with the Buyer Parties are ongoing and could result in further adjustments to the commencement or completion of the offer. The company has advised its stockholders to read the tender offer materials and the solicitation/recommendation statement when they become available, as they will contain important information about the tender offer's terms and conditions.
The information provided is based on a press release statement and filings with the SEC, and it reflects the latest developments in the merger process between Revance Therapeutics, Inc. and the Buyer Parties.
In other recent news, Revance Therapeutics reported a 20% increase in total net revenue, reaching $65.4 million, primarily due to a 65% increase in units sold and a 27% rise in net product revenue in its aesthetics division.
Additionally, the company's product, DaxinbotulinumtoxinA for Injection, received approval from China's National Medical (TASE:PMCN) Products Administration, marking a significant expansion into the Chinese market.
Revance is also in the process of merging with Crown Laboratories, a private global skincare company, in a deal valued at approximately $924 million.
However, this proposed merger has led to downgrades of Revance's stock rating by William Blair and Stifel to Market Perform and Hold, respectively.
Despite these downgrades, Mizuho (NYSE:MFG) maintains a Neutral rating on Revance shares. The company has also extended the commencement date of a tender offer for all outstanding shares of its common stock due to ongoing discussions with Teoxane SA. These recent developments highlight the dynamic nature of Revance Therapeutics' business landscape.
InvestingPro Insights
As Revance Therapeutics, Inc. (NASDAQ:RVNC) navigates through the extended tender offer process, InvestingPro data provides additional context to the company's financial situation. With a market capitalization of $398.63 million, Revance's financial metrics reveal both challenges and potential opportunities.
InvestingPro Tips highlight that Revance is "quickly burning through cash" and is "not profitable over the last twelve months." This financial strain could be a factor in the ongoing merger discussions and potential adjustments to the offer terms. The company's revenue growth of 25.82% over the last twelve months, reaching $256.94 million, demonstrates market traction, but the operating income margin of -75.39% underscores profitability challenges.
The stock's performance has been volatile, with InvestingPro data showing a significant 40.22% price increase over the last six months, contrasted by a 42.25% decline in the past three months. This volatility may reflect market uncertainty surrounding the merger process and Revance's financial outlook.
Investors considering Revance's stock amid these merger developments should note that InvestingPro offers 8 additional tips for RVNC, providing a more comprehensive analysis of the company's financial health and market position.
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