Aerovate Therapeutics Announces Special Cash Dividend in Connection with Merger with Jade Biosciences
WALTHAM, Mass. – Aerovate Therapeutics, Inc. (Nasdaq: AVTE) made a significant announcement on April 9, 2025, regarding a special cash dividend in connection with its upcoming merger with Jade Biosciences, Inc. (the “Merger”). The dividend, totaling $69.6 million, equates to approximately $2.40 per share.
Background
Aerovate Therapeutics, Inc. is a clinical-stage biotechnology company focused on the discovery, development, and commercialization of therapies for rare and severe diseases. The company’s pipeline includes several potential treatments for various conditions. In October 2024, Aerovate entered into a Merger Agreement with Jade Biosciences, a clinical-stage biotech company specializing in the research and development of innovative therapeutics for cancer and other diseases.
The Cash Dividend
The Board of Directors of Aerovate Therapeutics, in preparation for the Merger, decided to distribute a portion of the company’s cash reserves to its shareholders in the form of a special cash dividend. The total dividend amount is $69.6 million, which translates to approximately $2.40 per share.
Impact on Shareholders
Aerovate Therapeutics’ shareholders will receive the dividend payment as follows:
- Shareholders of record as of the close of business on April 15, 2025, will be entitled to receive the dividend.
- The dividend is expected to be paid on or about April 30, 2025.
Impact on the World
The cash dividend from Aerovate Therapeutics may have several ripple effects on the world:
- Increased liquidity: Shareholders who choose to sell their shares in the open market following the dividend payment could inject significant liquidity into the market.
- Reduced debt: The cash dividend could potentially reduce the company’s debt levels, making it a more financially stable entity.
- Potential for further acquisitions: With the cash dividend paid, Aerovate may have more resources to consider future acquisitions or partnerships.
Conclusion
Aerovate Therapeutics’ announcement of a special cash dividend in connection with the upcoming merger with Jade Biosciences is a noteworthy development. The dividend, totaling $69.6 million, is expected to be paid to shareholders of record as of April 15, 2025. The payment could lead to increased liquidity in the market, reduced debt for the company, and potential opportunities for further acquisitions. As the merger progresses, investors and industry observers will be closely watching for additional developments.
