Catabasis Pharma (NASDAQ:CATB) stock is soaring higher on Friday after announcing its acquisition of Quellis Biosciences.
Catabasis Pharma says that its acquisition of Quellis Biosciences was on a stock-for-stock basis. This has it offering up shares of CATB stock and Series X Preferred Stock in exchange for all outstanding equity interests of the company.
Quellis Biosciences is a privately-held biopharmaceutical company formed in 2017. Its focus is on discovering new best-in-class molecules for the treatment of serious rare diseases.
Catabasis Pharma notes that at the same time as the acquisition of Quellis Biosciences the company also started a private investment in public equity (PIPE). This has it offering up shares of its Series X Preferred Stock to existing and new investors.
Catabasis Pharma mentions that the PIPE will bring in $110 million for the company. Each share of Series X Preferred Stock is worth $3,093. These shares are convertible to 1,000 shares of CATB stock, which represents a price of $3.09 per share. The PIPE is expected to close on Monday.
Catabasis Pharma says that it plans to use funds from the PIPE to complete its IND-enabling studies, as well as Phase 1a and Phase 1b/2 clinical trials of using lead program QLS-215 to treat hereditary angioedema.
Catabasis Pharma expects all of this to grant it a total of $150 million in cash proceeds. The company says that this will allow it to operate through 2023.
CATB stock was up 188.5% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.