Brooklyn Immunotherapeutics Inc (NASDAQ:BTX) is moving higher again in the pre-market session on Monday, after falling 14% last week.
Major Trigger:
Brooklyn ImmunoTherapeutics Executes Letter of Intent to Acquire Novellus Therapeutics
Key Highlights:
announced it has executed a non-binding letter of intent (“LOI”) to acquire Novellus Therapeutics (“Novellus”), a company developing next-generation engineered mesenchymal stem cell (“MSC”) therapies using patented mRNA cell reprogramming and gene editing technologies licensed from Factor Bioscience (“Factor”). It is expected that the transaction will involve an acquisition by Brooklyn of all of the outstanding equity of Novellus (the “Transaction”).
Pursuant to the terms of the LOI, the parties intend to sign a definitive agreement (the “Definitive Agreement”) and work to close the acquisition on or before July 15, 2021. The terms of the LOI value Novellus at $125.0 million, which is proposed to be paid by Brooklyn by a combination of $17.4 million in cash and $107.6 million in BTX common stock.
Brooklyn currently has over $43 million of cash on its balance sheet to fund the cash component of the Transaction. The completion of the Transaction is subject to a number of conditions, and no assurances can be made that the parties will successfully negotiate and enter into a Definitive Agreement or that the proposed Transaction will be closed on the terms or timeframe contemplated by the LOI, or at all.
Market Reaction
As of 8:23, BTX stock jumped 8.60% to $15.35. So far the stock has traded 561K shares traded hands.
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