Ademi LLP is investigating Cyclerion (NASDAQ: CYCN) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with Korsana.
In the transaction, pre-merger Cyclerion shareholders are expected to own approximately 1.5% of the combined company, while pre-merger Korsana stockholders will own approximately 98.5%. Cyclerion insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Cyclerion by imposing a significant penalty if Cyclerion accepts a competing bid. We are investigating the conduct of the Cyclerion board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
Join this Action