When will the special committee be formed and what is the expected timeline for due diligence and shareholder approval?

Formation and Timeline:

According to the Aug. 28, 2025 press release, LakeShore Biopharma’s board will appoint a special committee “within the next 10‑12 business days.” The committee’s mandate is to conduct a thorough review of the revised preliminary non‑binding acquisition proposal. Management has indicated that the due‑diligence phase is expected to take roughly 30‑45 days after the committee’s formation, with a target shareholder‑approval meeting slated for late‑Q4 2025 (approximately mid‑December), assuming the review proceeds without material issues.

Trading Implications:

The imminent creation of the special committee is a catalyst that can tighten the stock’s price action in the short term. Expect modest upside pressure as investors price‑in the probability of a successful transaction, especially if the bid premium remains attractive relative to recent trading ranges (LSB has been consolidating near its 50‑day moving average). However, the defined timeline also sets a clear window for risk: any delay in committee formation, a protracted due‑diligence period, or a negative shareholder vote could trigger a rapid unwind and heightened volatility. Traders might consider a bull‑call spread or tight‑range straddle to capture upside while hedging against a potential negative outcome around the anticipated mid‑December shareholder vote. Keep an eye on volume spikes and any regulatory filings (e.g., Form 8‑K) that could confirm the committee’s composition or signal a shift in the deal’s terms.