DARA Biosciences, Inc.
Robbins Arroyo LLP: Acquisition of DARA BioSciences, Inc. (DARA) by Midatech Pharma Plc (MTPH) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of DARA BioSciences Inc. (NASDAQ: DARA) by Midatech Pharma Plc (London: MTPH). On June 4, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Midatech will acquire DARA. Under the terms of the agreement, DARA shareholders will receive 0.272 shares of Midatech for each share of DARA they own, the value of which is equivalent to $1.20 per share of DARA common stock.
Is the Proposed Acquisition Best for DARA and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at DARA is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
The $1.20 merger consideration is below the target price of $2.00 set by analysts at Ladenburg Thalmann & Co on March 5, 2015, and HC Wainwright & Co LLC on April 24, 2015. In the last three years, DARA traded as high as $6.90 on September 19, 2012, and most recently traded above the target price – at $1.21 – on September 9, 2014.
On May 13, 2015, DARA reported strong quarterly earnings results for its first quarter 2015. Net revenues were $652.2 thousand, an increase of 304% compared to the first quarter of 2014. In commenting on these results, DARA President and Chief Executive Officer Christopher G. Clement remarked, “Our first quarter results reflect a solid start for the year, as our product portfolio continues to perform well.”
In light of these facts, Robbins Arroyo LLP is examining DARA’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
DARA shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
DARA shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.