BOSTON and PLEASANTON, Calif. - Akari Therapeutics, Plc (NASDAQ: NASDAQ:AKTX), a biotechnology company specializing in autoimmune and inflammatory diseases, and Peak Bio Inc. (OTC: PKBO), which focuses on oncology and inflammation therapeutics, have disclosed a definitive agreement to merge.
The all-stock transaction will result in a combined entity retaining the Akari Therapeutics name, with continued listing expected on the Nasdaq Capital Market under the ticker AKTX.
The merger, anticipated to close by the end of the second quarter of this year, will create a company with a diverse pipeline of assets in various stages of development. Akari's lead asset, nomacopan, is undergoing a Phase 3 clinical trial for a rare complication of stem cell transplantation known as pediatric hematopoietic stem cell transplant-related thrombotic microangiopathy (HSCT-TMA).
Hoyoung Huh, M.D., Ph.D., with extensive leadership experience in the biotech industry, is expected to serve as the Chairman of the Board for the merged company. The Board of Directors will be composed of three directors from each company and one mutually selected independent director.
According to the terms of the agreement, Peak stockholders will receive Akari ordinary shares for each share of Peak stock they own, based on a specified exchange ratio. The equity ownership in the combined company is expected to be approximately 50% for Akari shareholders and 50% for Peak stockholders, subject to adjustments.
The transaction is subject to customary closing conditions, including shareholder approvals from both companies. Akari is advised legally by Goodwin Procter LLP, while Peak Bio is advised by DLA Piper LLP.
This merger is based on a press release statement.
InvestingPro Insights
As Akari Therapeutics and Peak Bio prepare for their merger, it's important for investors to consider the financial health and market performance of the companies involved. Peak Bio Inc. (OTC: PKBO) has been navigating challenging financial waters, as evidenced by recent data and analysis available on InvestingPro.
InvestingPro Data highlights that Peak Bio's market capitalization stands at a modest 0.05M USD. The company's revenue, as of the last twelve months ending Q2 2023, is reported at 0.47M USD with a concerning revenue decline of -4.55%. This is coupled with a significant gross profit margin deficit of -420.41%, painting a picture of financial distress.
InvestingPro Tips reveal that Peak Bio operates with a heavy debt burden and is rapidly depleting its cash reserves. Analysts are not optimistic about the company's profitability in the near term, expecting both sales and net income to decline within the current year. These factors contribute to the high price volatility that PKBO's stock has been experiencing.
For investors looking for a deeper dive into Peak Bio's financials and forecasts, InvestingPro offers a comprehensive set of additional tips. In total, there are 18 InvestingPro Tips available for PKBO, which can be accessed at https://www.investing.com/pro/PKBO. These tips provide valuable insights into the company's operational and financial status, which are crucial for making informed investment decisions.
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