Cycle Group Holdings Limited, through its wholly‑owned subsidiary AT2B, Inc., has extended the deadline for its tender offer to acquire all outstanding shares of Applied Therapeutics, Inc. The new expiration date is one minute after 11:59 p.m. Eastern Time on February 2, 2026, giving shareholders an additional four days to tender shares.
At the close of business on January 29, 2026, 75,895,437 shares—about 49.21 % of Applied Therapeutics’ outstanding shares—had been validly tendered and not withdrawn. The extension allows the transaction to proceed if the required majority of shares is tendered before the new deadline, but the current level of participation falls short of the 50 % threshold needed for the offer to close.
Applied Therapeutics is in a precarious financial position. As of September 30, 2025, the company held $11.95 million in cash and cash equivalents, a sharp decline from $79.40 million at year‑end 2024, and an accumulated deficit of $636.36 million. Management has expressed “substantial doubt” about the company’s ability to continue as a going concern within one year, and a $8.5 million promissory note from Cycle becomes immediately due if the merger agreement is terminated.
Cycle Group’s acquisition is driven by its strategic focus on rare genetic conditions. The deal would add Applied Therapeutics’ lead drug candidate, govorestat, an aldose reductase inhibitor for rare metabolic diseases such as Classic Galactosemia, CMT‑SORD, and PMM2‑CDG, to Cycle’s portfolio. The offer price of $0.088 per share in cash plus a non‑tradeable contingent value right—capable of paying up to an additional $0.40 per CVR—provides a modest upside for shareholders while giving Cycle a foothold in a high‑unmet‑need therapeutic area.
The board of Applied Therapeutics has unanimously recommended that shareholders tender their shares, citing the company’s limited liquidity, the risk of liquidation, and the inability to repay the promissory note if the offer fails. Analyst reactions to the original acquisition announcement in December 2025 included downgrades and significant reductions in price targets, driven by the low offer price relative to historical valuations and the company’s dire financial condition. The extension reflects the need to secure a majority of shares to avoid a potential liquidation scenario.
If the tender offer does not reach the required majority by February 2, the transaction will not close, leaving Applied Therapeutics in a vulnerable position. Shareholders who do not tender may face a future where the company’s assets are liquidated or sold at a lower valuation, while those who tender will receive the cash and contingent value rights as outlined in the offer. The outcome will hinge on the final share‑tendering volume and the continued financial viability of Applied Therapeutics.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.