KIRKLAND, Wash. & BOSTON - Virtual Therapeutics announced today the successful completion of its tender offer to acquire all outstanding shares of Akili, Inc., a Nasdaq-listed company specializing in digital cognitive treatments. The tender offer, which began on June 3, 2024, concluded at one minute past 11:59 p.m. EDT on July 1, with approximately 88.2% of Akili's outstanding shares tendered.
Following the tender offer, a merger is expected to occur today, resulting in Akili becoming a wholly owned subsidiary of Virtual Therapeutics. Shares of Akili ceased trading on Nasdaq before market opening today and will be delisted and deregistered.
Dan Elenbaas, co-founder and CEO of Virtual Therapeutics, stated that the acquisition lays the groundwork for establishing a leading digital health company. The combined expertise aims to expand the delivery of behavioral services to a broader patient base.
Akili has been recognized for its innovative approach in creating cognitive treatments with technologies that engage patients in a manner akin to entertainment, supported by clinical trials. Virtual Therapeutics is known for its digital health solutions that combine therapeutic techniques with gaming elements, delivered through a cloud-based platform.
The financial terms of the deal included the acquisition of Akili shares at $0.4340 per share. TD Cowen served as Akili's exclusive financial advisor, with Goodwin Procter LLP as legal counsel. Baker & McKenzie LLP provided legal counsel to Virtual Therapeutics.
This acquisition marks a significant move in the digital health sector, particularly in the field of mental health and cognitive treatment. The merger is set to expand the reach of both companies' innovative approaches to treatment, potentially benefiting a wider range of patients.
The information in this article is based on a press release statement.
In other recent news, Akili, Inc., a digital therapeutics leader, has received FDA clearance for its product EndeavorOTC, an over-the-counter digital therapeutic for adults with attention-deficit/hyperactivity disorder (ADHD).
In addition, Akili has amended its agreement with Shionogi & Co., Ltd., resulting in the cancellation of a $5.0 million debt and upfront payments to Akili totaling $10.5 million.
Furthermore, the company has initiated a strategic review to enhance shareholder value and announced a workforce reduction of approximately 46% to decrease operating expenses. Akili has also secured an additional 180-day grace period from Nasdaq to meet the minimum bid price requirement, potentially through a reverse stock split if necessary.
These are the recent developments shaping Akili's operations.
InvestingPro Insights
As Virtual Therapeutics wraps up its acquisition of Akili, Inc., investors are keenly observing the financial health and market performance of the latter. Akili's recent financial data and analyst insights, accessed via InvestingPro, provide a deeper understanding of the company's status at the time of the buyout.
InvestingPro Data indicates that Akili has a market capitalization of $34.01 million, reflecting the size of the company in the marketplace. Despite the challenges faced by Akili, such as not being profitable over the last twelve months, the company has demonstrated a significant revenue growth of 426.49% in the last twelve months as of Q1 2024. This impressive growth rate is supported by a gross profit margin of 56.11%, suggesting that while the company's operating income is currently negative, it has a strong underlying ability to generate profit from its revenues.
Two InvestingPro Tips that stand out in the context of this acquisition are Akili's strong return over the last three months, with a 66.15% price total return, and the fact that it holds more cash than debt on its balance sheet. These factors may have contributed to Virtual Therapeutics' decision to proceed with the merger, as they indicate a robust short-term financial performance and a degree of financial stability.
For investors and stakeholders looking to delve deeper into the financial metrics and future outlook of Akili, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available, which can be accessed for a comprehensive analysis of Akili's financials and market performance. To explore these valuable tips, visit https://www.investing.com/pro/AKLI and take advantage of the exclusive offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. This offer can provide investors with detailed analytics and expert perspectives that are crucial for informed decision-making in the dynamic digital health sector.
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