Core Viewpoint - The Ademi Firm is investigating Generation Bio for potential breaches of fiduciary duty related to its transaction with XOMA Royalty Corporation, raising concerns about the board's conduct and shareholder rights [1][3]. Transaction Details - Generation Bio shareholders will receive $4.2913 in cash per share along with one contingent value right (CVR) per share, which may provide additional financial benefits based on certain conditions [2]. - The CVRs will allow holders to receive portions of net cash exceeding $29 million at closing, potential savings from lease obligations, and proceeds from an existing license agreement with Moderna [2]. Board Conduct and Shareholder Rights - The transaction agreement imposes significant penalties on Generation Bio for accepting competing bids, which may limit the board's ability to act in the best interests of all shareholders [3]. - There are concerns regarding the substantial benefits that insiders of Generation Bio will receive as part of the change of control arrangements, prompting an investigation into whether the board is fulfilling its fiduciary duties [3].
Shareholder Alert: The Ademi Firm investigates whether Generation Bio Co. is obtaining a Fair Price for its Public Shareholders