NTN Buzztime (NYSEAMERICAN:NTN) is seeing massive gains for its stock on Thursday after announcing a merger deal with Brooklyn ImmunoTherapeutics LLC.
This deal will have Brooklyn ImmunoTherapeutics combining with a wholly-owned subsidiary of NTN Buzztime. After this, the combined company will operate under the Brooklyn ImmunoTherapeutics name.
NTN Buzztime notes that the merger will be an all-stock transaction. If it reaches completion, NTNT shareholders will own 5.9% of the merged company. The remaining 94.1% will belong to investors of Brooklyn ImmunoTherapeutics.
The current plan has Brooklyn ImmunoTherapeutics leadership taking over the company. It will also see the new company’s stock trade on the NYSE American market. However, it won’t use the NTN stock ticker and will instead adopt a new one.
Allen Wolff, CEO of NTN Buzztime, said this about the news.
“This transaction reflects the continuing commitment of our management team and board of directors to deliver value to our stockholders. Following a thorough review of strategic alternatives, we determined that the proposed merger with Brooklyn is in the best interest of our stockholders.”
Holders of NTN Buzztime stock and investors in Brooklyn ImmunoTherapeutics will first have to approve of the deal before the merger can move forward. So long as there are no issues, the two companies expect the deal to close during the fourth quarter of the current year.
NTN stock was up 181.1% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.