On October 18, 2022 Scopus BioPharma Inc. (Nasdaq: "SCPS"), a biopharmaceutical company developing transformational therapeutics for serious diseases with significant unmet medical need, reported the completion of a series of related recapitalization transactions designed to enhance shareholder value (Press release, Scopus BioPharma, OCT 18, 2022, View Source [SID1234622165]).
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These transactions include the elimination of warrants to purchase approximately 21 million shares of Scopus common stock. The recapitalization also independently values Duet BioTherapeutics, Scopus’ pure play immuno-oncology subsidiary, at $25 million.
Joshua R. Lamstein, Chairman of Scopus BioPharma, stated, "Highlighting the embedded value of Duet was a key driver for the recapitalization. Scopus retains an approximately 90% ownership stake in Duet. The value of this stake greatly exceeds the total current market capitalization of Scopus. We expect that completing the recapitalization should serve as a catalyst for a significant increase in the trading price of Scopus’ common stock."
Alan Horsager, Ph.D., President – Immuno-Oncology of Scopus BioPharma and President and Chief Executive Officer of Duet BioTherapeutics, stated, "The establishment of a $25 million independent, stand-alone valuation positions Duet to raise capital directly and go public in 2023."
Mr. Lamstein added, "The recapitalization transactions provide us with greater strategic flexibility. The opportunity to secure capital at both the Scopus and Duet corporate levels enables us to pursue the most attractive financing alternatives."
Dr. Horsager added, "The additional financing alternatives afforded to Duet will enhance our access to the capital necessary to accelerate the development of DUET-02, our highly promising antisense technology. Additional capital resources will also enable us to further the on-going research by Marcin Kortylewski, Ph.D., Co-Founder and Senior Scientific Advisor of Duet BioTherapeutics and Professor of Immuno-Oncology at City of Hope, into systemic delivery formulations for DUET-01. We believe that these advancements will enable Duet to go public at a valuation significantly in excess of its current $25 million valuation."