Adverum Reminds Stockholders to Tender their Shares into the Offer by Lilly

Core Points - Adverum Biotechnologies, Inc. is in the process of being acquired by Eli Lilly and Company, with a tender offer price of $3.56 per share in cash and potential additional value through contingent value rights (CVRs) [1][2][9] - The total potential consideration for Adverum shareholders could reach up to $12.47 per share if certain milestones are achieved [1][9] - The tender offer is set to expire on December 8, 2025, and is contingent upon the tender of a majority of Adverum's outstanding shares [2][5] Financial Details - Adverum has issued a promissory note to Lilly for a total of $65 million, of which $40 million has already been advanced, with an additional $25 million due on December 5, 2025 [3][5] - The promissory note carries an interest rate of SOFR plus 10% per annum, with a maturity date of January 22, 2026 [3][5] - If the merger agreement is terminated, all amounts under the promissory note will become due immediately, which could lead to Adverum's bankruptcy due to insufficient liquidity [3][6] Strategic Considerations - The Adverum Board of Directors believes the cash offer provides immediate liquidity and certainty of value, especially in light of potential liquidation risks [3][9] - The board conducted an 18-month review of strategic alternatives, concluding that the offer from Lilly is the best available option for shareholders [3][9] - The CVRs offer an opportunity for shareholders to gain additional value, contingent on the achievement of specified milestones [3][9]