Kent Lake Urges Quanterix Management to Address Key Questions Regarding its Proposed Transaction with Akoya Biosciences During Today’s Earnings Call
Kent Lake PR , holding 7.47% of Quanterix (NASDAQ: QTRX) shares, has expressed strong opposition to the proposed merger with Akoya Biosciences (NASDAQ: AKYA). The investor raises critical concerns about the transaction, highlighting that over 82% of the combined company enterprise value would be allocated to Akoya shareholders, leaving less than 18% for Quanterix shareholders.
Kent Lake has nominated three independent candidates for Quanterix's Board of Directors and demands answers to key questions regarding: the disproportionate value distribution, Akoya's going concern issues, potential conflicts of interest involving board member Dr. Ivana Magovčević-Liebisch, material NIH funding risks, and the merger process where Quanterix was reportedly bidding against itself after other bidders withdrew due to concerns about Akoya's high cash burn and debt.
Kent Lake PR, detentore del 7,47% delle azioni di Quanterix (NASDAQ: QTRX), ha espresso forte opposizione alla fusione proposta con Akoya Biosciences (NASDAQ: AKYA). L'investitore solleva preoccupazioni critiche riguardo alla transazione, evidenziando che oltre l'82% del valore aziendale combinato sarebbe destinato agli azionisti di Akoya, lasciando meno del 18% agli azionisti di Quanterix.
Kent Lake ha nominato tre candidati indipendenti per il Consiglio di Amministrazione di Quanterix e richiede risposte a domande chiave riguardanti: la distribuzione del valore sproporzionata, le problematiche di continuità operativa di Akoya, potenziali conflitti di interesse che coinvolgono il membro del consiglio Dr. Ivana Magovčević-Liebisch, i rischi di finanziamento significativi da parte del NIH e il processo di fusione in cui Quanterix avrebbe apparentemente fatto offerte contro se stessa dopo che altri offerenti si sono ritirati a causa delle preoccupazioni riguardo all'elevato consumo di cassa e al debito di Akoya.
Kent Lake PR, que posee el 7.47% de las acciones de Quanterix (NASDAQ: QTRX), ha expresado una fuerte oposición a la fusión propuesta con Akoya Biosciences (NASDAQ: AKYA). El inversor plantea preocupaciones críticas sobre la transacción, destacando que más del 82% del valor de la empresa combinada se destinaría a los accionistas de Akoya, dejando menos del 18% para los accionistas de Quanterix.
Kent Lake ha nominado a tres candidatos independientes para la Junta Directiva de Quanterix y exige respuestas a preguntas clave relacionadas con: la distribución desproporcionada del valor, los problemas de continuidad de Akoya, posibles conflictos de interés que involucran al miembro de la junta Dr. Ivana Magovčević-Liebisch, riesgos significativos de financiamiento del NIH y el proceso de fusión en el que Quanterix supuestamente estaba pujando contra sí misma después de que otros postores se retiraron debido a preocupaciones sobre el alto consumo de efectivo y la deuda de Akoya.
Kent Lake PR는 Quanterix (NASDAQ: QTRX) 주식의 7.47%를 보유하고 있으며, Akoya Biosciences (NASDAQ: AKYA)와의 제안된 합병에 강력히 반대하고 있습니다. 이 투자자는 거래에 대한 중요한 우려를 제기하며, 결합된 회사의 기업 가치의 82% 이상이 Akoya 주주에게 할당될 것이며, Quanterix 주주에게는 18% 미만이 남을 것이라고 강조합니다.
Kent Lake는 Quanterix 이사회에 독립적인 후보 3명을 추천했으며, 불균형한 가치 분배, Akoya의 지속 가능성 문제, 이사 Dr. Ivana Magovčević-Liebisch와 관련된 잠재적 이해 충돌, NIH 자금 조달 위험 및 Quanterix가 다른 입찰자가 Akoya의 높은 현금 소모와 부채에 대한 우려로 철수한 후 스스로 입찰하고 있었다는 합병 과정과 관련하여 주요 질문에 대한 답변을 요구하고 있습니다.
Kent Lake PR, détenant 7,47% des actions de Quanterix (NASDAQ: QTRX), a exprimé une forte opposition à la fusion proposée avec Akoya Biosciences (NASDAQ: AKYA). L'investisseur soulève des préoccupations critiques concernant la transaction, soulignant que plus de 82% de la valeur d'entreprise combinée serait attribuée aux actionnaires d'Akoya, laissant moins de 18% aux actionnaires de Quanterix.
Kent Lake a nommé trois candidats indépendants au conseil d'administration de Quanterix et exige des réponses à des questions clés concernant : la répartition disproportionnée de la valeur, les problèmes de continuité d'Akoya, les conflits d'intérêts potentiels impliquant le membre du conseil Dr. Ivana Magovčević-Liebisch, les risques de financement significatifs du NIH, et le processus de fusion où Quanterix aurait apparemment enchéri contre elle-même après que d'autres enchérisseurs se soient retirés en raison de préoccupations concernant la forte consommation de liquidités et la dette d'Akoya.
Kent Lake PR, der 7,47% der Aktien von Quanterix (NASDAQ: QTRX) hält, hat starke Bedenken gegen die vorgeschlagene Fusion mit Akoya Biosciences (NASDAQ: AKYA) geäußert. Der Investor bringt kritische Bedenken hinsichtlich der Transaktion vor und hebt hervor, dass über 82% des Unternehmenswertes des fusionierten Unternehmens an Akoya-Aktionäre verteilt werden würden, während weniger als 18% für Quanterix-Aktionäre verbleiben.
Kent Lake hat drei unabhängige Kandidaten für den Vorstand von Quanterix nominiert und fordert Antworten auf zentrale Fragen zur: unverhältnismäßigen Wertverteilung, den Fortbestehensproblemen von Akoya, potenziellen Interessenkonflikten, die das Vorstandsmitglied Dr. Ivana Magovčević-Liebisch betreffen, wesentlichen NIH-Finanzierungsrisiken und dem Fusionsprozess, bei dem Quanterix Berichten zufolge gegen sich selbst geboten hat, nachdem andere Bieter aufgrund von Bedenken hinsichtlich der hohen Cash-Burn-Rate und Schulden von Akoya zurückgezogen hatten.
- None.
- Proposed merger allocates only 18% of enterprise value to Quanterix shareholders
- Akoya faces going concern issues and high cash burn rate
- Potential conflict of interest in board oversight of merger
- Material risks related to NIH funding uncertainty
- Other potential bidders withdrew due to concerns about Akoya's financial situation
Insights
Kent Lake PR 's public opposition to the Quanterix-Akoya merger represents a significant challenge from a 7.47% shareholder that could potentially derail the transaction. The activist investor's core argument centers on valuation disparity, claiming Akoya shareholders would receive over 82% of the combined enterprise value despite Quanterix contributing greater value.
This activist campaign highlights several governance concerns that could influence shareholder votes:
- Potential conflicts of interest involving board member Dr. Ivana Magovčević-Liebisch's connections to Akoya's commercial partner
- Questions about Akoya's financial stability and going concern issues not adequately addressed
- Concerns about the negotiation process, suggesting Quanterix was "bidding against itself" after other potential acquirers walked away
- Material risks related to NIH funding uncertainty allegedly not reflected in projections
Kent Lake's nomination of three director candidates escalates this from mere opposition to a full proxy contest. The timing ahead of an earnings call suggests a coordinated attempt to pressure management publicly and rally other shareholders. The immediate impact is increasing uncertainty around deal completion under current terms.
What's particularly notable is Kent Lake's focus on fiduciary duty concerns and insufficient disclosures, language that often presages shareholder litigation if the board proceeds without addressing these objections. The probability of either deal termination or renegotiation of terms has significantly increased with this formal opposition from a substantial shareholder.
The public opposition from Kent Lake creates a substantial obstacle for this transaction, particularly given their 7.47% ownership stake. Their critique focuses on valuation asymmetry - alleging Akoya shareholders would receive over 82% of combined company value versus just under 18% for Quanterix shareholders.
From a transaction perspective, several critical red flags emerge:
First, Kent Lake's assertion that Quanterix was "bidding against itself" after other potential buyers abandoned the process due to concerns about Akoya's cash burn and debt signals potential overpayment. Competitive tension typically drives optimal pricing; its absence often leads to suboptimal terms for the acquirer.
Second, the references to Akoya's going concern issues suggest Quanterix shareholders may be providing a bailout rather than participating in a strategic combination. The risk allocation appears severely imbalanced if Akoya indeed faces existential financial challenges.
Third, the alleged conflict involving a board member with connections to Akoya's commercial partner raises legitimate governance concerns about the independence of the decision-making process.
The NIH funding uncertainty represents another unpriced risk factor that could materially impact future performance projections that justified the transaction. Without proper risk adjustments, valuation models may be fundamentally flawed.
This activist opposition creates tangible dealbreaking potential. Either Quanterix must convincingly address these concerns, renegotiate terms more favorable to its shareholders, or face a real possibility of failing to secure shareholder approval for this transaction.
Believes Proposed Transaction with Akoya Significantly Undervalues Quanterix
Encourages Shareholders to Vote Against Transaction to Protect Long-Term Value of their Investment
RINCON,
Kent Lake urges Quanterix management to address the following questions related to the Transaction on its earnings call today:
-
Disproportionate Value Distribution: Why does Quanterix continue to pursue a transaction that allocates over
82% of the combined company enterprise value to Akoya shareholders and less than18% to Quanterix shareholders?
- Akoya Going Concern: When evaluating Akoya’s liquidity and going concern issues, as well as its potential impact on Quanterix shareholders' value, what key findings and assumptions did the Quanterix Board review and rely on to inform their M&A evaluation and approve the terms of this merger, which awards Akoya shareholders a significant valuation premium on all metrics compared to Quanterix shareholders in spite of Akoya’s going concern disclosures?
- Conflicts of Interest: To what extent was Dr. Ivana Magovčević-Liebisch allowed to attend meetings, participate in discussions, and vote on matters related to the Akoya merger, despite her conflict of interest as a Board member at Akoya’s key commercial diagnostic partner?
- Material NIH Risk: Given that uncertainty around National Institutes of Health (“NIH”) funding has led to a significant revaluation across the sector, and this uncertainty is material enough for peer companies to begin including new NIH-related risk factor disclosures in their FY 2024 10-K filings, how can Quanterix shareholders reasonably rely on the forward-looking statements, financial projections, fairness opinions, and purported merger benefits being presented that don’t account for or contemplate this new material risk?
- Akoya’s Process: Given the S-4 discloses that Quanterix was bidding against itself by the end of the process, and that all other bidders had already walked away without making final offers due to concerning issues such as Akoya’s high cash burn and debt, how is the Quanterix Board integrating this information into their fiduciary framework to continue to recommend the Merger?
- The Board’s Recommendation: Considering these outstanding issues and insufficient disclosures, what steps does the Quanterix Board plan to take to ensure they are fulfilling their fiduciary duties and are not required to withdraw their Merger recommendation?
Kent Lake believes that Quanterix shareholders cannot make a fully informed vote, and the Quanterix Board cannot fulfill its fiduciary duties, if these questions on merger terms, conflicts of interest, unaddressed risks, and unreliable forward-looking statements are left unanswered and the material facts undisclosed.
About Kent Lake
Kent Lake Partners LP is an investment fund founded by Ben Natter in 2019 with a focus on small and mid-capitalization public equities, particularly in the healthcare space. Mr. Natter has over a decade of successful public healthcare equity investing experience.
Certain Information Concerning the Participants
Kent Lake Partners LP (“Kent Lake Partners”), together with the other Participants (as defined below), intends to file a preliminary proxy statement and an accompanying GOLD universal proxy card with the Securities and Exchange Commission (“SEC”) to be used to solicit votes for, among other matters, the election of its slate of highly-qualified director nominees at the 2025 annual meeting of stockholders of Quanterix Corporation, a
KENT LAKE STRONGLY ADVISES ALL SHAREHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS, INCLUDING ITS GOLD PROXY CARD, AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC’S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS’ PROXY SOLICITOR.
The participants in the proxy solicitation are currently anticipated to be Kent Lake Partners, Kent Lake PR LLC (“Kent Lake PR”) and Benjamin Natter (collectively, the “Kent Lake Parties”); and Alexander G. Dickinson, Bruce Felt and Hakan Sakul (the “Kent Lake Nominees” and collectively with the Kent Lake Parties, the “Participants”).
As of the date hereof, Kent Lake Partners directly beneficially owned 2,879,999 shares of the Company’s Common Stock,
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Investor
Ben Natter, 415-237-0007
info@kentlakecap.com
Saratoga Proxy Consulting LLC
John Ferguson / Ann Marie Mellone
212-257-1311 / 888-368-0379
info@saratogaproxy.com
Media
Joe Germani / Kendall Heebink
Longacre Square Partners
KentLake@longacresquarepartners.com
Source: Kent Lake PR LLC
FAQ
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