Hookipa Pharma (HOOK) and Poolbeg Pharma said Thursday that they have entered into non-binding discussions for an all-share acquisition by Hookipa of Poolbeg.
Under the terms of the potential combination, based on discussions so far, Poolbeg shareholders will receive 0.03 Hookipa shares for each share held, the companies said.
Poolbeg shareholders are expected to receive 55% of the equity in the combined firm, while Hookipa will hold the remainder, the company said.
Hookipa plans to raise up to $30 million through a 100% primary private placement immediately following the merger, the companies said.
The fundraising is expected to be completed around the same time as the potential merger in early Q2, the companies added.
Hookipa will be the sole stock market-listed entity for the new company and Poolbeg will become a private unit as part of the proposed deal, the companies said.
Shares of Hookipa were up 8% in recent Thursday premarket activity.
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