Unum Therapeutics (NASDAQ:UMRX) stock is on the rise Tuesday following the acquisition of private biotechnology company Kiq.
Unum Therapeutics announced the acquisition early on Monday and it sent UMRX stock soaring 200% higher. It looks like the stock’s growth on Tuesday is a continuing rally from the Kiq acquisition announcement.
The deal had Unum Therapeutics making a stock-for-stock exchange to acquire Kiq. This had it offering up a mix of its common stock, as well as shares Series A preferred stock, for all outstanding equity interests belonging to Kiq.
To go along with its acquisition of Kiq, Unum Therapeutics also announced a private share offering. This has it offering $104.4 million worth of shares to a group of private investors. It includes Series A shares priced at $880 each that convert to 1,000 shares of UMRX stock.
Unum Therapeutics will be using the funds from the private share offering for further clinical testing of PLX9486. This is a selective KIT D816V inhibitor that Kiq purchased the rights to from Plexxikon. The development of the drug provides UMRX with a path to follow beyond 2022.
Chuck Wilson, PhD, president and CEO of Unum Therapeutics, said this about the news.
“We are excited by Kiq’s lead clinical program and the potential to build a pipeline of novel kinase inhibitors while continuing to explore strategic opportunities for our cell-based therapy programs.”
UMRX stock was up 6.8% as of Tuesday afternoon and is up 205.6% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.