Echo Lake Capital Increase Offer to Acquire Quince Therapeutics, Inc.

• Offers $1.80 per share in cash plus CVR to receive 85% of the future net proceeds Quince receives as part of the Lighthouse Pharmaceuticals transaction
• Stock trades below its net cash and investments balance of approximately $2.30 per share
• Willing to increase cash component of the offer if company can demonstrate that its net cash at closing would be higher than we currently estimate
• Offer's cash component alone represents 115% premium to company's stock price before our original buyout offer in March

NEW YORK, NY / ACCESSWIRE / July 13, 2023 / Earlier today Echo Lake Capital issued a letter to the Board of Directors of Quince Therapeutics, Inc. (NASDAQ:QNCX). The letter described a revised proposal to acquire all the company's common stock for $1.80 per share in cash plus a CVR to receive 85% of the future net proceeds received from the Lighthouse Pharmaceutical transaction announced on January 27, 2023.

A full copy of the letter can be found below:

CONTACT:
Ephraim Fields
ef@echolakecapital.com

July 13, 2023
To The Board Of Directors:
David Lamond
Dirk Thye
June Bray
Philip Low
Margaret McLoughlin
Una Ryan
Christopher Senner

We understand the Board would consider selling the Company at a price higher than we had originally offered, so we are pleased to submit this revised proposal (the "Proposal") under which we would acquire all the outstanding Common Stock of Quince Therapeutics, Inc. ("Quince" or the "Company") for $1.80 per share in cash, plus a contingent value right ("CVR") representing the right to receive 85% of the future net proceeds QNCX receives as part of the Lighthouse Pharmaceuticals transaction announced on January 27, 2023. This revised Proposal has a higher cash component and includes a CVR to enable shareholders to share in any potential upside from the Company's drug assets.

The cash component of our Proposal alone represents a premium of 115% to the Company's stock price before our original buyout offer in March. Given our access to capital and the Company's healthy balance healthy sheet, we are highly confident in our ability to obtain financing for this transaction and believe we can complete customary diligence and negotiate definitive documentation within 30 days.

As one of your largest shareholders we believe your stock is severely undervalued considering the Company currently has, among other things, (i) approximately $2.30 per share of net cash and investments, (ii) no drugs being actively marketed or developed that require cash expenditures, and (iii) potential earn-out and other proceeds from its sale of assets to Lighthouse Pharmaceuticals on January 27, 2023.

If the Company can demonstrate that its net cash balance at closing would be higher than we currently estimate, we would consider increasing the cash component of our Proposal. We look forward to discussing our Proposal with you further and would appreciate a response by 9am ET on July 19, 2023, at which point this Proposal will expire.

Please be aware that this Proposal is an expression of interest only, and we reserve the right to withdraw or modify our Proposal in any manner. No legal obligation with respect to a transaction shall arise unless and until execution of mutually acceptable definitive documentation.

Sincerely,

Ephraim Fields
Echo Lake Capital

SOURCE: Echo Lake Capital