Anebulo Pharmaceuticals announced a voluntary cash tender offer to purchase up to 300,000 shares of its common stock at $3.50 per share, a total of $1.05 million. The offer is designed to reduce the number of shareholders to fewer than 300, a prerequisite for the company’s planned go‑private transaction and the termination of its SEC reporting obligations.
The board concluded that the previously proposed reverse stock split would be too costly for shareholders. The split had been intended to consolidate holdings, but the cost of processing multiple account purchases and fractional share payouts had risen sharply. By replacing the split with a tender offer, the company can achieve the same shareholder‑count reduction while avoiding the administrative and financial burden of a split.
Richie Cunningham, President and CEO, said the expense of the reverse‑split transaction now exceeds the benefits it would provide to remaining shareholders. He emphasized that the decision to proceed with the tender offer is in the best interest of the company and its stockholders and reflects a careful cost‑benefit analysis of the two options.
Anebulo is a clinical‑stage biopharmaceutical focused on its lead candidate, selonabant, and has no revenue to date. The go‑private plan is intended to allow the company to focus on product development without the costs and regulatory requirements of a public company. The tender offer is a key step in streamlining the shareholder base and positioning the company for a potential private‑market transaction.
The tender offer price of $3.50 represents a 61% premium over the current share price of $2.17. The offer will be filed as a Schedule TO with the SEC, and the company will continue to monitor the cost‑benefit analysis of the tender offer versus a reverse split, and may pursue alternative transactions if they become economically prudent.
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