Reunion Neuroscience to be Acquired by MPM BioImpact in $13.1 Million All-Cash Deal

LOS ANGELES– Reunion Neuroscience Inc. a clinical-stage biopharmaceutical company specializing in innovative therapies for underserved mental health conditions, has announced a definitive arrangement agreement with MPM BioImpact, a leading biotechnology investment firm. Under the agreement, affiliates of MPM will acquire Reunion in a transaction valued at approximately US$13.1 million, to be paid in cash. The deal will be executed through a statutory plan of arrangement under the Canada Business Corporations Act.

According to the terms of the arrangement, Reunion shareholders will receive US$1.12 in cash for each outstanding common share held, prior to the effective time of the arrangement. Based on the Bank of Canada exchange rate on May 31, 2023, this translates to approximately CAD $1.52 per share, representing a premium of around 43.1% over the trailing 30-trading-day volume weighted average price.

The Board of Directors at Reunion, after careful consideration and in consultation with financial and legal advisors, as well as a special committee of independent directors, has determined that the arrangement is in the best interests of the company and its shareholders. The Board has unanimously recommended that shareholders vote in favor of the arrangement at a special meeting expected to take place on or around July 12, 2023. The record date for shareholders entitled to attend and vote at the meeting has been set as June 12, 2023.

Reunion’s President and CEO, Greg Mayes, expressed his belief that the all-cash transaction maximizes value and serves the best interests of the company’s shareholders. He welcomed the recognition of Reunion’s clinical pipeline by MPM and looked forward to finalizing the transaction for the benefit of Reunion’s shareholders. Ansbert Gadicke, Managing Partner at MPM BioImpact, expressed excitement about the partnership and the opportunity to develop innovative solutions for underserved mental health conditions.

The completion of the arrangement is subject to several conditions, including approval by at least two-thirds of the votes cast by shareholders at the special meeting, regulatory approvals, approval by the Ontario Superior Court of Justice, and the fulfillment of certain financial and operational obligations. If these conditions are met, the arrangement is expected to close in the third quarter of 2023.