WILMINGTON, Del., Aug. 25, 2020 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, is investigating potential breach of fiduciary duty claims against the Board of Directors of Cellular Biomedicine Group, Inc. (NASDAQGS: CBMG) (“Cellular Biomedicine” or the “Company”) relating to the sale of Cellular Biomedicine to a newly-formed consortium of Company insiders consisting of (1) Cellular Biomedicine’s CEO Bizuo (Tony) Liu, (2) certain other members of Company management, and (3) certain of the Company’s largest stockholders which collectively hold approximately 51.5% of Cellular Biomedicine’s outstanding shares (the “Management Consortium”). The two parties have announced that they reached an agreement in principle pursuant to which the Management Consortium will acquire Cellular Biomedicine in a going private merger. As a result of the merger, Cellular Biomedicine shareholders are only anticipated to receive $19.75 per share in cash in exchange for each share of Cellular Biomedicine.
Andrews & Springer’s investigation so far has revealed that the consideration Cellular Biomedicine shareholders are expected to receive is inadequate. While the Company claims that shareholders will receive a 31.4% premium for their shares, the deal consideration is only an 11.77% premium when compared to Cellular Biomedicine’s closing share price of $17.67 on November 11, 2020, the day on which the Company announced that it was contemplating a merger with the Management Consortium. The $19.75 share price is also a significant discount to the $26 per share price target issued by BTIG Australia Limited on November 7, 2019. Our investigation has also revealed that the process leading up to the announcement of the merger appears to have significant conflicts of interest thus making the process and consideration unfair.
If you own shares of Cellular Biomedicine and want to receive additional information and protect your investments free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/cellular-biomedicine-merger-class-action-investigation/ or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.
Contact:
Craig J. Springer, Esq.
cspringer@andrewsspringer.com
Toll Free: 1-800-423-6013