contingent value right


Also found in: Acronyms.

Contingent Value Right

A right attached to a stock entitling the holder to the difference between the share price and some stated amount of money should the share price not exceed that amount in a given period of time. CVRs are most often attached to stocks after a merger or acquisition to encourage shareholders not to sell, and to give the new situation a chance to become profitable.

contingent value right (CVR)

The right to a cash payment if the average price of an underlying security fails to reach a specified level by a certain date. The size of the payment to the owner of the right depends on the difference between the specified and actual prices. The CVR expires without value if the actual price of the underlying security exceeds the specified price.
Mentioned in ?
References in periodicals archive ?
In addition to the upfront cash payment, Alexza stockholders will be granted contingent value rights to receive cash payments in four payment categories if specified milestones are achieved following the closing.
Ipsen acquired all outstanding shares of Clementia for a purchase price of USD 25 per share in cash upfront plus a contingent value right of USD 6.0 per share related to the multiple osteochondromas indication for a total transaction value of up to USD 1.31bn.
Dyax shareholders may receive additional value through a non-tradable contingent value right (CVR) that will pay $4.00 in cash per Dyax share upon approval of DX-2930 for HAE, representing a potential additional $646 million in aggregate contingent consideration.
As previously disclosed, in exchange for each share of WP Stewart common stock, AllianceBernstein is paying WP Stewartshareholders USD 12 per share in cash and issuing one transferable contingent value right entitling the holders to an additional cash payment of USD four per share if the assets under management in the acquired W.P.
In addition to a pro-rata portion of the Purchase Price, stockholders of TheStreet will receive additional consideration in connection with the closing of the merger transaction consisting of, (1) a special cash distribution equal to the cash held by the company immediately prior to the closing less any excluded liabilities as agreed to between the parties; and (2) a contingent value right, or CVR, which will entitle each holder to receive a pro-rata portion of the expected release of funds from the outstanding escrow agreements entered into by the company in connection with the sale of each its RateWatch and BoardEx/TheDeal businesses.
In conjunction, Dyax shareholders may receive additional value through a non-tradable contingent value right that will pay USD4.00 in cash per Dyax share upon approval of DX-2930 in hereditary angioedema (HAE), representing a potential additional USD646m in aggregate contingent consideration.
Stewart common stock, AllianceBernstein is paying WP Stewart shareholders USD12 per share in cash and issuing one transferable contingent value right entitling the holders to an additional cash payment of USD4.00 per share if the assets under management in the acquired WP Stewart investment services reach USD5bn on or before the third anniversary of the closing, it said.
According to TST, in addition to a pro-rata portion of the Purchase Price, stockholders of TST will receive additional consideration in connection with the closing of the merger transaction consisting of, a special cash distribution equal to the cash held by TST immediately prior to the closing less any excluded liabilities as agreed to between the parties; and a contingent value right, or CVR, which will entitle each holder to receive a pro-rata portion of the expected release of funds from the outstanding escrow agreements entered into by TST in connection with the sale of each its RateWatch and BoardEx/TheDeal businesses.
Upon the closing of the transaction, Aratana stockholders will receive 0.1481 share of Elanco common stock and one contingent value right for each share of Aratana common stock.
Shareholders will also receive one Contingent Value Right per share of Birner common stock owned.
Additionally, Actavis expects up to approximately USD360m in a Contingent Value Right (CVR) that may be payable based on the status of eluxadoline, Furiex's lead product, as a controlled drug following approval.