The clinical-stage biotech company Anchiano Therapeutics Ltd. (Nasdaq: ANCN) saw its stock rising 40.12% in after-hours trades on Friday. The price of the company’s shares rose to $4.68 in extended trading, continuing the rally started in the regular session rising 18.44% to $3.34 at the ring of the bell. The rallies came in the absence of any directly linked news that could drive the stock to move but it could be attributed to the approaching financial results. Although the company has not provided the date yet to officially announce its results those are likely to be coming this week. The company is also to be going through a merger, as per a deal inked in December.
What driving the stock:
Anchiano, headquartered in Cambridge, MA, is a biopharmaceutical company developed to discover, develop, and commercialize new approaches to treat cancer. Anchiano is working on small molecules that inhibit Pan-Mutant-RAS in addition to stimulating the b-catenin pathway and inhibit PDE10 activity.
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Anchiano in December announced the signing of a definitive merger agreement with Chemomab Ltd. The agreement’s highlights are as follows:
- By the terms of the agreement, Chemomab shareholders would eventually become a majority shareholder in the combined company.
- A public company, based on Chemomab’s lead product, CM-101, will be formed through the merger.
- Investors who hold shares necessary to approve the merger with the respective companies have agreed to shareholder support agreements, allowing the merger to proceed.
- Shareholders of Chemomab and holders of Chemomab equity awards will convert 100% of their equity holdings into shares of the new entity.
- The current shareholders of Chemomab will own approximately 90% of the combined company upon closing, before the additional PIPE financing transaction.
- Depending on the PIPE financing at the time of the closing along with Anchiano’s cash balance at the time of closing, the actual allocation may need to be adjusted.
- The boards of directors of both companies have approved the proposed transaction.
- A special meeting of Anchiano’s shareholders, due to be held in the first quarter of 2021, will be required to approve the merger. Other customary conditions must also be satisfied.