We are investigating the fairness of the $1.16 per share in cash, plus a contingent value right (“CVR”) for up to $0.17 per share in cash, at which Rain Oncology, Inc. (Nasdaq: RAIN) (“RAIN”) has agreed to be sold to Pathos AI, Inc. (“Pathos”) via a tender offer.
If you remain a RAIN shareholder and question the fairness of the price, you may contact our firm to discuss your legal rights at no charge by completing and submitting the form below.
Why is there an investigation?
On December 13, 2023, RAIN announced that it had agreed to be sold to Pathos via a tender offer at a price of $1.16 per share of in cash, plus a CVR for up to $0.17 per share in cash upon achievement of certain cash balance and clinical milestones.
“We are investigating whether the RAIN Board of Directors acted in the best interests of RAIN shareholders in approving the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes the terms of the CVR, including the probability that the milestones will be achieved within the timelines specified.”
Notably, the deal price is well below RAIN’s 52-week high of $14.48 per share, which indicates the transaction may be opportunistic to take advantage of RAIN’s setback earlier this year when it announced that its lead product candidate, milademetan, did not reach the primary endpoint in a Phase 3 trial for patients with liposarcoma, a rare type of cancer.