Vital Therapies announce proxy firm recommendation of vote 'FOR' Immunic deal
Vital Therapies announced that Institutional Shareholder Services, or ISS, and Glass Lewis have both recommended that Vital Therapies stockholders vote "FOR" the proposed business combination with Immunic AG and the related proposals in the Company's proxy statement/prospectus for the special meeting of its stockholders. In its report, ISS stated, among other things, that "the proposed merger appears to be the best available alternative for shareholders. It appears unlikely that a liquidation would return materially greater value to shareholders given the company's cash burn, the costs of terminating the transaction, and the costs associated with a liquidation. Moreover, the market reaction at announcement was not overly negative relative to the index, and the board conducted what appears to have been a thorough strategic review process." ISS further noted that "the reverse merger provides a vehicle for Immunic to become a public company on a major exchange, which the companies believe will facilitate the combined company obtaining additional capital in the future to support development and commercialization activities. Following the transaction, the combined company will focus on Immunic's three development programs." Additionally, Glass Lewis concluded that "Given the depth of the board's review, Vital's small scale and the Company's lack of viable product candidates, we do not see significant cause for investors to object to the proposed outcome." Glass Lewis further noted "we believe there is sufficient cause for investor support here."