Aerovate Therapeutics Plans Significant Cash Dividend for Shareholders Post-Merger with Jade Biosciences

Aerovate Therapeutics: Preparing for a Major Cash Dividend

In a recent update, Aerovate Therapeutics, Inc. (Nasdaq: AVTE) has revealed plans for a substantial cash dividend as part of its ongoing merger with Jade Biosciences, Inc. This announcement comes as both companies prepare for the formal closing of the merger, expected to occur before the end of April 2025.

Anticipated Cash Dividend Value

Aerovate has estimated a cash dividend ranging between $67.6 million and $69.6 million, intended for shareholders prior to the merger. This projection is based on the company’s estimated net cash right before the merger is finalized. As of April 4, 2025, Aerovate has a total of 28,985,019 shares of common stock outstanding, meaning each shareholder could expect a significant payout depending on the final calculations.

Key Dates

The official declaration of the cash dividend is contingent upon the approval of Aerovate’s board of directors. An announcement confirming the dividend is expected to be made later this month, with actual payments scheduled to coincide with the closing of the merger. Shareholders will have the opportunity to vote on the merger in a special meeting set for 9:00 AM ET on April 16, 2025. This vote is crucial as it could impact the terms and outcomes of the merger.

Importance of the Merger

The merger between Aerovate and Jade represents a strategic partnership aimed at leveraging both companies’ strengths in biotechnology. Aerovate focuses on developing treatments for rare cardiopulmonary diseases, while Jade Biosciences is dedicated to creating therapies for autoimmune conditions. Jade’s pipeline includes promising projects such as JADE-001, targeting immunoglobulin A nephropathy, with hopes to initiate first-in-human trials by late 2025.

Stakeholder Involvement

Shareholders, particularly those holding Aerovate stock, are encouraged to familiarize themselves with the merger details. The proxy solicitor, Innisfree MA Incorporated, has been designated to assist shareholders with voting procedures and inquiries regarding the upcoming special meeting. They can be reached at (877) 750-8310 or (212) 750-5833.

Future Considerations

While the cash dividend is an appealing prospect for shareholders, it’s essential to acknowledge the complexities surrounding the merger process. Regulatory approvals and shareholder votes will fundamentally shape the outcome of the proposed transaction. Aerovate has indicated that forward-looking statements relating to the dividend and merger completion are subject to various risks and uncertainties, such as the potential non-approval from stakeholders and other external factors.

In conclusion, Aerovate Therapeutics is taking significant strides toward enhancing shareholder value alongside expanding its market reach through its merger with Jade Biosciences. As the date for the special meeting approaches, stakeholders are advised to stay informed and participate in the decision-making process that may greatly influence their investments moving forward.

For more detailed updates on this developing story and other initiatives by Aerovate or Jade, both companies urge interested parties to review their filings with the Securities and Exchange Commission (SEC) and keep an eye on their respective websites.

Stay tuned for further announcements as we approach crucial milestones in this merger journey.