Frequency Therapeutics (NASDAQ:FREQ) stock is rocketing higher on Friday following news that it will combine with Korro Bio.
This merger plan is designed to bring Korro Bio public and will focus on the development of Korro’s RNA editing programs. As such, the combined company will operate under the Korro Bio name and will trade using the KRRO ticker.
Frequency Therapeutics will issue new shares of FREQ stock to Korro Bio as part of the merger deal. That will result in Korro Bio holding a 92% stake in the company. The remaining 8% will belong to current Frequency Therapeutics investors.
To go along with this, Frequency Therapeutics has secured funding from several life sciences investors in connection to the merger. When the merger goes through, this will see it gain $117 million in financing. That should give the combined company a total of $170 million in cash to work with.
More FREQ Stock Merger Details
Investors will note that the boards of both companies have given their unanimous support to the merger deal. So long as they don’t run into any trouble with regulators or shareholders, the merger is set to close in the fourth quarter of 2023.
David Lucchino, CEO of Frequency Therapeutics, said the following about the merger:
“Following comprehensive review and consideration of our strategic options, management and our Board of Directors believe the merger with Korro Bio provides the best opportunity for the company and its stockholders.”
Heavy trading follows today’s news with some 3.5 million shares of FREQ stock on the move. For comparison, the company’s daily average trading volume is about 137,000 shares. FREQ is up 44.4% as of Friday morning.
Investors looking for even more of the most recent stock market news today are in the right place!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Friday! That includes the biggest pre-market stock movers this morning, the latest news concerning Nikola (NASDAQ:NKLA) stock and more. All of that news is available at the following links!
More Friday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
- Why Is Nikola (NKLA) Stock Up 50% Today?
- XRP Crypto Alert: XRP Soars 60% on Ripple-SEC Lawsuit News
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 risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
