The Ademi Firm is investigating Sage (NASDAQ: SAGE) for possible breaches of fiduciary duty and other violations of law in its transaction with Supernus Pharmaceuticals.
In the tender offer transaction, shareholders of Sage will receive $8.50 per share in cash (or an aggregate of approximately $561 million), payable at closing, plus one non-tradable contingent value right (CVR) collectively worth up to $3.50 per share in cash (or an aggregate of approximately $234 million), for total consideration of $12.00 per share in cash (or an aggregate of up to approximately $795 million). The CVR is payable upon achieving certain net sales and commercial milestones.
Sage insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Sage by imposing a significant penalty if Sage accepts a competing bid. We are investigating the conduct of the Sage board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.