Bio-Techne invests in CyVek with future acquisition opportunity

April 7, 2014

Practitioner Insights thumbnail 2(Editor’s Note: This post is an excerpt from an article appearing in Practitioner Insights on WestlawNext)

Minneapolis-based biotechnology company Techne Corp., which does business under the name Bio-Techne, made an equity investment in CyVek Inc., a Connecticut-based, privately funded biotech company, on April 2. The investment gives Bio-Techne, through its subsidiary, the opportunity to acquire CyVek if CyVek achieves certain milestones.

Investment and board observer seat

Under the terms of the agreement of investment and merger, Research & Diagnostic Systems Inc. (R&D), a wholly owned subsidiary of Bio-Techne, made a $10 million investment in CyVek. In return, R&D received CyVek common shares representing 19.99 percent of its outstanding voting stock.

As a result of its investment, R&D will become a party to CyVek’s investor agreements and obtain an observer seat on CyVek’s board of directors. As such, R&D will be permitted to attend and participate in CyVek’s board meetings and to receive information provided to board members. Since R&D’s board seat is merely as an observer, however, the representative will not be permitted to formally vote on any matter.

Continue reading on WestlawNext Practitioner Insights (subscription required)

 practitioner insights email 040714

Talk to your Rep about Practitioner Insights