Renalytix plc (NASDAQ: RNLX) (LSE: RENX), an AI-enabled diagnostics firm specializing in kidney disease, has initiated a formal sale process following an unsolicited acquisition approach. The company, which also continues to evaluate various financing avenues, has engaged Stifel Nicolaus Europe Limited as its financial advisor for the potential sale.
The approach came from a large, well-capitalized, publicly listed diagnostics company interested in acquiring Renalytix's issued and future share capital. The formal sale process, as defined under the City Code on Takeovers and Mergers, will allow Renalytix to consider all strategic options, including a potential sale or the continuation of independent operations on AIM and Nasdaq.
The Takeover Panel has granted certain dispensations, allowing parties involved in the formal sale process to remain anonymous and exempting them from the standard 28-day offer deadline. Interested parties are expected to sign a non-disclosure and standstill agreement before gaining access to detailed company information and submitting proposals.
Renalytix also disclosed its current financial status, with cash on hand of $2.3 million and marketable securities worth approximately $1.4 million as of March 3, 2024. The company has reduced its operating costs and forecasts its existing cash to sustain operations through April 2024, barring the completion of the sale process or successful financing activities.
The announcement places Renalytix in an official offer period, with further updates on the sale process to be provided in due course. Still, there is no guarantee that the sale process will result in any offers, strategic investments, or transactions, nor are the terms of any potential deals assured.
This development comes as the company is in advanced discussions with existing shareholders and potential new investors to secure equity and debt financing. The information is based on a recent SEC filing by Renalytix.
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