Apexigen (NASDAQ:APGN) stock is rising higher on Wednesday following news of a deal with Pyxis Oncology (NASDAQ:PYXS).
This deal has Pyxis Oncology agreeing to acquire Apexigen for 0.1725 shares of PYXS stock for each share of APGN stock. This implies a value of 64 cents for each share of APGN. That represents a 60% premium to the stock’s closing price on Tuesday. It also represents an enterprise value of around $16 million.
Pyxis Oncology expects to issue 4 million of PYXS stock to fuel its purchase of Apexigen. When the deal closes, it will result in current APGN shareholders owning 10% of the combined company. The remaining 90% will belong to current PYXS shareholders.
Xiaodong Yang, M.D., Ph.D., CEO of Apexigen, said this about the news:
“With Pyxis Oncology’s strong cash position and its commitment to further sotigalimab’s development, we believe that this transaction will greatly enhance the opportunity to efficiently advance sotigalimab for patients suffering from a variety of difficult-to-treat cancers.”
More APGN Stock Deal Details
The boards of directors at both companies have already approved the acquisition deal. Now it just needs to complete customary closing conditions. That includes getting approval from shareholders and regulators. If all goes well, the two companies expect the transaction to close by mid-2023.
APGN stock is seeing heavy trading today as some 3 million shares change hands. For comparison, its daily average trading volume is closer to 109,000 shares. APGN stock is up 31% Wednesday morning.
There’s even more stock market news traders will want to know about below!
We’ve got all of the biggest stock market stories investors will want to read about on Wednesday! Among them are why shares of Palantir (NASDAQ:PLTR), PTC Therapeutics (NASDAQ:PTCT), and Ocugen (NASDAQ:OCGN) stock are moving today. All of that news is ready at the following links!
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risk.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
More Friday Stock Market News
- Cathie Wood Is Betting Big on Palantir (PLTR) Stock
- Why Is PTC Therapeutics (PTCT) Stock Down 21% Today?
- Why Is Ocugen (OCGN) Stock Down 22% Today?