Freeline Therapeutics To Be Bought By Syncona For $28.3 Mln In Cash; Freeline Stock Up

(RTTNews) - Freeline Therapeutics Holdings Plc (FRLN) said on Wednesday that it has inked a deal to be acquired by the newly established portfolio company, Syncona Ltd (SYNC), for around $28.3 million in an all-cash transaction.

Following the news, FRLN was trading up by 11.76 percent at $6.46 per share in the pre-market trade on the Nasdaq.

The acquisition price of $6.50 per American Depositary Share or ADS represents a 51 percent premium over the closing price of FRLN on October 18.

The acquisition, expected to be closed in the first-quarter of 2024, will result in FRLN becoming a wholly owned Syncona portfolio company, and its ADSs will no longer be listed on Nasdaq.

As part of the transaction, Freeline has entered into a secured convertible loan note with Syncona for up to $15 million.

The note will bear interest at a rate of 12 percent annually and will be capitalized monthly in arrears.

The note, which will have a conversion price of $6.50 per ADS, will mature in November 2024.

Freeline intends to use the proceeds from the loan note to continue its GALILEO-1 trial for FLT201 in Gaucher disease, prepare for a potential registrational trial, advance its GBA1-linked Parkinson's disease research program, and for general corporate purposes.