Jounce Therapeutics (NASDAQ:JNCE) stock is on the rise Thursday after the company revealed merger plans with Redx Pharma.
Jounce Therapeutics and Redx Pharma will undergo a merger with an all-stock transaction fueling it. That will have holders of Redx Pharma stock receiving 0.2105 shares of JNCE stock for each share they own.
It’s also worth noting that Jounce Therapeutics plans to enact a reverse stock split while it goes through with the merger plan. This would see it consolidate five shares of JNCE stock into one share. If that happens, the new shares exchange with Redx Pharma would be 0.0421 shares of JNCE stock for each of the company’s shares.
As for ownership of the combined company, holders of Redx Pharma stock will own a 63% stake. The remaining 37% stake of the company will belong to current shareholders of JNCE stock.
More Details About the JNCE Stock Deal
Once the deal between the two companies is complete, the combined company will use the Redx name. It will also trade on the Nasdaq under the REDX stock ticker.
Leading this new company will be current Redx CEO Lisa Anson. Also, Redx chairman Jane Griffiths will take on the role of non-executive chairman of the combined company. The remainder of the Board will be made up of Jounce Therapeutics and Redx Pharma directors.
JNCE stock is up 14.1% as of Thursday morning.
Investors can find more of the latest stock market news below!
We’ve got all of the latest happenings traders need to know about for Thursday! That includes the biggest pre-market stock movers this morning, as well as what’s going on with the housing market, and more. You can find all that news at the following links!
More Thursday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- Homebuyers Alert: Do You Qualify for New Lower Mortgage Insurance Costs?
- Why Is Luminar (LAZR) Stock Up 28% Today?
On the date of publication, William White did not have (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.
