Ademi LLP is investigating GlycoMimetics (NASDAQ: GLYC) for possible breaches of fiduciary duty and other violations of law in its transaction with Crescent.
Under the agreement, GlycoMimetics stockholders are expected to own approximately 3.1% of the combined company and Crescent stockholders are expected to own approximately 96.9% of the company. The percentage of the company that GlycoMimetics’s stockholders will own is subject to adjustment based on the amount of GlycoMimetics’s net cash at the closing date.
The transaction agreement unreasonably limits competing transactions for GlycoMimetics by imposing a significant penalty if GlycoMimetics accepts a competing bid. GlycoMimetics insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of GlycoMimetics’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.