Arbutus Biopharma Corporation (NASDAQ:ABUS) shares climbed 10.3% in premarket trading on Friday after the biotechnology company announced plans to repurchase up to $230 million of its common stock through a modified Dutch auction tender offer.
The proposed buyback will give shareholders the opportunity to tender their shares for cash at a price ranging from $5.00 to $5.75 per share, subject to any applicable withholding taxes.
Tender offer expected to begin in August
Arbutus expects the tender offer to launch on or around August 24, 2026 and remain open until approximately September 29, 2026, unless the company decides to extend or terminate the process.
The company intends to finance the entire repurchase using cash already on its balance sheet.
Under the modified Dutch auction structure, participating shareholders will be able to specify a price within the stated range at which they are prepared to sell their shares. The final purchase price and number of shares acquired will be determined through the tender process.
Moderna settlement provides backdrop to capital return
The planned buyback follows Arbutus’ March 2026 settlement with Moderna and the receipt of an initial settlement payment in July.
Arbutus President and CEO Lindsay Androski said the Moderna agreement provided recognition of inventions relating to the company’s lipid nanoparticle technology.
The company also reiterated that it intends to continue protecting its intellectual property rights against alleged infringement. These efforts include proceedings involving Pfizer and BioNTech, pursued alongside Arbutus’ exclusive licensee Genevant.
Regulatory approvals still required
The tender offer has not formally commenced and remains conditional on Arbutus receiving certain exemptive relief under securities regulations in both Canada and the United States.
Applications for the required relief have already been submitted, with the company expecting to begin the offer promptly after receiving the necessary approvals.
J.P. Morgan Securities LLC has been appointed dealer-manager for the transaction. Georgeson LLC will act as information agent, while TSX Trust Company will serve as depositary.
The strong premarket reaction suggests investors welcomed the scale of the proposed capital return, with the $230 million programme providing shareholders with an opportunity to sell stock at a defined cash price following the company’s recent settlement proceeds.