Friday’s top losers; Kohl’s; Encompass Health, & Celldex
Kohl’s to finalize strategic review process after negotiations with Franchise Group
Kohl’s Board Kohl’s Corporation (NYSE: KSS) dropped 19.64% after the company announced that after an exclusive negotiation period with Franchise Group, its Board of Directors unanimously determined to finalize its strategic review process. The terms and price of FRG’s latest offer, which was not entirely practical or complete, mirrored the current finance and retail circumstances.
Board Chair Peter Boneparth said that the Board had been dedicated to conducting a thorough and in-depth analysis of all available strategic options throughout the process to determine which course of action would maximize shareholder value. He added that After interacting with over 25 companies in a drawn-out exercise, FRG came out as the top bidder, and the company facilitated additional due diligence and proceeded into exclusive discussions. Unfortunately, despite a determined effort on the part of both parties, it wasn’t easy to come to an acceptable and completely executable deal due to the existing financial and retail environment.
Encompass Health completes Spin-off of its hospice and health division
Encompass Health Corporation (NYSE: EHC) lost 16.97% after announcing the completion of a 100% spin-off of Enhabit Inc., its hospice and health business. Today, Enhabit operates as a separate public firm. As of right now, Enhabit will start “regular-way” trading on the NYSE under the ticker symbol “EHAB,” while Encompass Health will continue trading on the New York Stock Exchange under the symbol “EHC.”
Distribution of one Enhabit ordinary share for every two shares o Encompass Health common shares owned as of the end of trading on June 24, 2022, the settlement date for the share distribution, was made to Encompass Health investors to finalize the separation. Cash will replace any fractional Enhabit stock shares. The stock distribution was on July 1, 2022, at 12:01 am Eastern Time in a distribution meant to be tax-free for Encompass Health shareholders, for income tax reasons, except with respect to cash obtained in relation to the fractional shares.
Celldex announces preliminary barzolvolimab Phase 1b study results
Celldex Therapeutics Inc (NASDAQ: CLDX) lost 15.8% despite reporting positive preliminary data from Barzolvolimab Phase 1b study in chronic spontaneous urticaria at EAACI 2022. New research from Celldex Therapeutics suggests that its investigational medicine, barzolvolimab, may help treat the symptoms of persistent spontaneous urticarias, a disabling skin condition.
According to findings from an initial study, 4 of 8 participants who received a mid-level dosage once per month and 4 of 9 patients who received a high dose once after two months experienced a “complete” response, which means the patients’ disease-specific, severe, searing skin hives stopped developing. Also, 2 of the eight people who received a placebo responded. Most of the adverse effects were relatively mild. The findings add to earlier ones Celldex revealed in individuals with urticaria that are “inducible” by a trigger, such as warm or cold temperatures.