Calyxt (NASDAQ:CLXT) stock is rocketing higher on Tuesday after the company signed a merger agreement with Cibus Global.
Calyxt and Cibus Global both operate in the agriculture-based gene-editing sector. With this combination, the two will combine their efforts in trait development for the next generation of plant breeding.
The merger between CLXT and Cibus Global will use an all-stock transaction. This will see Calyxt file a statement with the U.S. Securities and Exchange Commission (SEC) for the issuance of new shares in the merger.
What Else to Know About the CLXT Stock Deal
Investors will also want to keep in mind that Cellectis (NASDAQ:CLLS) holds a 49.1% equity interest in Calyxt. The company has agreed to vote in favor of the combination between Calyxt and Cibus. A majority of shareholders have to vote in favor of the deal for it to reach completion. When the merger is complete, Cellectis’ equity interest in the combined company will sit at 2.5%.
Calyxt and Cibus will also have to complete other customary closing conditions before the deal is complete, including achieving approval from regulators. So long as that all goes well, the deal will close in the second quarter of 2023.
Today’s news brings with it heavy trading of CLXT stock. As of this writing, more than 8 million shares have changed hands. That’s a massive surge over the company’s daily average trading volume of 403,000 shares.
CLXT stock is up 141.4% in pre-market trading on Tuesday.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.