The Ademi Firm is investigating Kronos (Nasdaq: KRON) for possible breaches of fiduciary duty and other violations of law in its transaction with Concentra.
In the transaction, shareholders of Kronos will receive only $0.57 per share, plus one contingent value right, which represents the right to receive: (i) 50% of the net proceeds in the case of a disposition of the Kronos’s product candidates known as KB-9558 and KB-7898 that occurs within 2 years following closing; (ii) 100% of the net proceeds in the case of a disposition of the Company’s product candidates known as KB-0742, lanraplenib and entospletinib that occurs prior to closing; (iii) 100% of cost savings realized prior to closing; (iv) 80% of cost savings realized between the merger closing date and the second (2nd) anniversary of the merger closing date; and (v) 50% of cost savings realized between the second (2nd) anniversary of the merger closing date and the third (3rd) anniversary of the merger closing date.
Kronos insiders will receive substantial benefits as part of change of control arrangements.