Quince stock surges ~50% on acquisition offer from Echo Lake Capital

Quince Therapeutics (NASDAQ:QNCX) said Echo Lake Capital has proposed to acquire the company's common stock at $1.60 per share in cash.

Echo sent a letter to Quince's board noting that its proposal represents a premium of 90% to Quince's closing stock price on March 20.

Echo said that as one of Quince's largest shareholders, it believes the company's stock is severely undervalued. Quince's stock currently trades at $0.84, at an equity market cap of ~$31M (which is significantly less than its cash and investments balance alone) and is in danger of being delisted, Echo added.

Echo said it will be difficult for Quince's board to significantly shrink this valuation gap because - 1) the company is not marketing or developing any products, 2) the company has limited institutional following, and 3) that Quince has "historically disappointed investors and currently lacks credibility in the investment community."

In addition, Echo asked Quince's not to pursue any significant transactions, besides the out-licensing of NOV004, while its proposal is outstanding.

Echo noted that its proposal is not contingent on outside financing and Echo believes it can complete diligence and negotiate definitive agreement within 30 days.

Echo said it reserves the right to withdraw or modify the proposal in any manner.

QNCX +52.09% to $1.28 premarket March 21