Intec Pharma Inc. (NASDAQ: NTEC) stock drops by 7.88% during the current market trading session. Intec Pharma is a clinical-stage biopharmaceutical firm specializing in the development of medicines based on their Accordion Pill platform technology. NTEC’s Accordion Pill is an oral medication delivery device that uses effective stomach retention and tailored release mechanism to increase the safety and effectiveness of current and developing medicines.
Current update on NTEC stock
Intec Pharma stated that its entirely owned subsidiary, Intec Parent, has signed a securities purchase deal to fund $30 million in a private placement with a single healthcare-focused investor. Intec Israel plans to implement a 1-for-4 reverse share split of its existing ordinary shares in conjunction with the Decoy Merger in order to fulfill NASDAQ’s initial listing criteria. When the reverse share split takes effect, each of Intec Israel’s outstanding ordinary shares will be merged into one ordinary share.
Before the conclusion of the private placement and Decoy Merger, the reverse share split and Domestication Merger will commence. After the market closes on July 26, 2021, the reverse share split will take effect. The Domestication Merger is set to take effect on July 27, 2021, before the market opens. Intec US will start trading on the Nasdaq Capital Market on July 27, 2021, rather than Intec Israel, as a result of the reverse share split and Domestication Merger.
The exclusive placement agency for the private placement is H.C. Wainwright & Co. The funds raised of the private placement will be used by Intec US for operating capital. The fulfillment of the private placement is a closing requirement of the Decoy Merger, and it is scheduled to take place shortly before the Decoy Merger closes on or about August 3, 2021, provided to the fulfillment of normal closing conditions.