Anchiano Therapeutics (NASDAQ:ANCN) stock is soaring higher Tuesday on news of a merger with Chemomab.
An Anchiano Therapeutics news release reveals that the company’s merger will have Chemomab taking over. That includes its shareholders holding 90% of the new company, as well as its current management team leading it. To go along with this, the combined company will use the name Chemomab Therapeutics.
At the same time as the merger, Chemomab will hold a private investment in public equity (PIPE). The goal of this is to raise funds for the progression of its lead candidate, CM-101, into a Phase 2 clinical trial. The funds will also be used to develop other early-stage products in its pipeline.
Stan Polovets, chairman of the board for Anchiano Therapeutics, said this about the news boosting ANCN stock higher.
“Following a comprehensive review of strategic alternatives, Anchiano’s board of directors has concluded that the proposed transaction with Chemomab is in the best interest of our shareholders. Chemomab’s CM-101 has demonstrated positive clinical results, with a novel mechanism of action that has potential to become an important option for patients with debilitating fibrotic diseases. We intend to hold a special meeting of Anchiano’s shareholders in the first quarter of 2021 to vote on this merger.”
Anchiano Therapeutics and Chemomab aren’t likely to run into resistance from shareholders. Both companies have entered into agreements with shareholders holding enough of a stake in the companies to approve the deal.
ANCN stock was up 170.5% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.