Shares of biotechnology company Evelo Biosciences (NASDAQ:EVLO) are trending higher today after it disclosed a sublease termination and surrender deal with clinical research and diagnostic products provider Bio-Rad Laboratories (NYSE:BIO).
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The deal terminates the sublease on 40,765 square feet of office and laboratory space in Cambridge, Massachusetts on September 15, 2023, instead of the previously scheduled September 2025 timeline.
In lieu of the early termination, Evelo will make a one-time termination payment of $523,556 to Bio-Rad. Additionally, Bio-Rad can also draw $850,000 on a letter of credit and could be entitled to a further ~$2.5 million associated with the completion of a monetization event.
The $2.5 million contingent payment is dependent upon the sale of certain assets of Evelo, the out-licensing of its EDP-2939 assets, or the sale of equity securities of the company.
While today’s price gains come on top of a 145% jump in Evelo shares over the past month, the stock is still down a massive 78.8% over the past year.
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