Ademi LLP is investigating VBL Therapeutics (NASDAQ: VBLT) for possible breaches of fiduciary duty and other violations of law in its transaction with Notable Labs.
Ademi LLP alleges VBL Therapeutics’ financial outlook and prospects are excellent and yet VBL Therapeutics shareholders are expected to own approximately only 24% of the combined company, each on a fully-diluted basis and subject to adjustment. The transaction agreement unreasonably limits competing bids for VBL Therapeutics by imposing a significant penalty if VBL Therapeutics accepts a superior bid. VBL Therapeutics insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of VBL Therapeutics’ board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for VBL Therapeutics.