CohBar (NASDAQ:CWBR) stock is soaring higher on Tuesday after the company announced a planned merger with Morphogenesis.
CohBar and Morphogenesis are planning for an all-stock merger that will see the two combine to create a new company named TuHURA Biosciences. This company will continue to trade its shares on the Nasdaq.
The all-stock transaction will see investors in CohBar receive 3.3 shares of the combined company for each share of CWBR stock that they own. This will give them a 15% stake in the combined company. Meanwhile, current Morphogenesis shareholders will collectively own 77% of the combined company.
Additionally, CohBar has signed an agreement with a current investor in Morphogenesis. This investor has agreed to a $15 million private placement in the company that will go into effect when the merger closes. The shares sold in this placement will represent “approximately 9% of the common stock of CohBar on a pro forma basis.”
Management’s Commentary on the Merger
Dr. James Bianco, CEO of Morphogenesis, said this about the merger agreement:
“We are gearing up to initiate our Phase 2/3 registration study for IFx-Hu2.0 early next year. Our technology platforms have the potential to significantly increase the number of cancer patients that respond to immunotherapies, such as checkpoint inhibitors. This transaction serves as a significant next step in the advancement of our important mission.”
Investors are reacting positively to the merger, which is expected to close in the third quarter of 2023. This has more than 22 million shares of CWBR stock changing hands as of this writing. That’s well above its daily average trading volume of about 10,000 shares.
CWBR stock is up 130.2% as of Tuesday morning.
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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.
