Cosmo to buy back spin-out Cassiopea

4 October 2021

Shares of Ireland-incorporated drugmaker Cosmo Pharmaceuticals (SIX: COPN) fell 4.4% to 76 Swiss francs this morning after it revealed it has agreed to buy back Italy-based Cassiopea (SIX: SKIN), the dermatologics company it spun out in 2015.

Cosmo is launching a public exchange offer in Switzerland to acquire all of the publicly held registered shares of Cassiopea. The exchange ratio per Cassiopea share amounts to 0.467 new Cosmo share.

The exchange ratio is based on the respective 60-day volume-weighted average price (VWAP) share price of each company and reflective of the historical relationship between the market capitalization of Cosmo and that of Cassiopea in the prospective of a “merger of equals”. The exchange ratio corresponds to 37.13 francs per Cassiopea share based on the closing price of Cosmo on October 1, 2021 and 39.02 francs based on the 60-day VWAP of Cosmo as of 1 October 2021.

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