Kitov boosts ownership in TyrNovo to 92%

Kitov Pharmaceuticals (TASE: KTOV) has acquired an additional 27% stake in TyrNovo, a privately-held developer of novel small molecules in the oncology therapeutic field, from unaffiliated minority shareholders, also based in Israel. The news pushed Kitov’s shares up 10.11% to $2.07 in pre-market trading on the Nasdaq.

As announced on January 13, 2017, Kitov had acquired a controlling interest, which is now around 65% of TyrNovo. After the closing of this transaction, Kitov will hold approximately 92% of TyrNovo's issued and outstanding ordinary shares. Kitov initially acquire an around 56% equity stake in TyrNovo from its majority shareholder, for consideration of $2 million in cash and $1.8 million equivalent ordinary shares of Kitov.

Following negotiations with a group of unaffiliated minority shareholders who collectively hold about 27%, of TyrNovo, the company has entered into an agreement to acquire their shares based on an agreed upon TyrNovo valuation of $7 million. In exchange for these TyrNovo shares, Kitov will issue 13,169,689 new shares (equivalent to 658,484 American Depositary Shares or ADSs) of Kitov, at an agreed upon price, in excess of prevailing market prices, of $2.50 per ADS.