NLS Pharmaceutics (NASDAQ: NLSP) stock surged during intraday trading after a biopharmaceutical company signed a binding term sheet with Kadimastem for a strategic merger.
NLS Pharmaceutics and Kadimastem have agreed to merge in a strategic transaction. This merger will see Kadimastem become a wholly-owned subsidiary of NLS. This reverse triangular merger will result in Kadimastem shareholders owning 85% of the newly combined entity.
The transaction is subject to approval from shareholders and Nasdaq and is expected to close by December 31, 2024. Following the merger, the new entity will operate under the Kadimastem name and continue trading on the Nasdaq Capital Market.
This merger deal will expedite the development of Kadimastem’s cell therapy platform, focusing on treatments for neurodegenerative diseases and diabetes.
As part of the merger terms, all but one officer and director from NLS will step down. Kadimastem will take over the development of NLS’s promising Dual Orexin Agonist (DOXA) platform. Additionally, NLS will divest its remaining assets under a contingent value rights agreement, with proceeds going to current NLS shareholders.
Both companies’ boards of directors have approved the binding term sheet and expect to execute definitive agreements in September 2024. This merger seeks to capitalize on the synergies between the two companies’ product pipelines, particularly in diabetes and sleep-wake disorders.
Kadimastem is progressing with its AstroRx® product candidate for ALS treatment, which has received FDA approval for a Phase IIa clinical trial in the U.S. The company is also working with iTolerance on a diabetes treatment product, IsletRx, which is nearing pre-Investigational New Drug submission to the FDA.
NLS Pharmaceutics (NASDAQ: NLSP) Stock Movement
NLSP stock soared 23.05% on Monday, closing at $0.2338, marking a 29.74% increase for the week. The trading volume was 118,598,418 shares, significantly higher than the average daily volume of 12.08 million.
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