BOSTON and LONDON - Akari Therapeutics, Plc (NASDAQ:AKTX), a biotechnology company specializing in autoimmune and inflammatory diseases, announced the approval of its proposed merger with Peak Bio, Inc. by its shareholders. In a recent General Meeting, about 99% of the votes cast, either in person or by proxy, favored the issuance of shares for the merger, which is anticipated to close on November 13, 2024.
The merger, initially agreed upon on March 5, 2024, is structured as an all-stock transaction. It will result in a roughly equal split of ownership, with Akari and Peak Bio shareholders each holding approximately 50% of the combined entity, subject to adjustments based on net cash levels at closing.
Samir (CSE:SAM) Patel, MD, Akari’s Interim President & CEO, expressed his satisfaction with the shareholder support, which is seen as a vital step towards the merger's completion. He emphasized the strategic focus on the Antibody Drug Conjugate (ADC) and Geography Atrophy (GA) platforms for the new entity. Additionally, Patel noted that the merger is expected to resolve the Nasdaq shareholder deficiency issue that Akari is currently facing, securing its listing status.
The combined company will continue to operate under the name Akari Therapeutics, Plc and is expected to remain listed on the Nasdaq Capital Market under the ticker AKTX. Peak Bio stockholders will receive Akari ordinary shares in exchange for each share of Peak Bio stock they own, based on a predetermined exchange ratio.
Akari's lead asset is nomacopan, a bispecific recombinant inhibitor targeting complement C5 activation and leukotriene B4 (LTB4) activity. Meanwhile, Peak Bio, a clinical-stage biopharmaceutical company, brings to the table an ADC platform targeting cancer and a Phase 2-ready neutrophil elastase inhibitor.
This announcement is based on a press release statement and contains forward-looking statements regarding the merger and the combined company's future operations. These statements involve risks and uncertainties, and actual events could differ materially from those projected. Investors are urged to read the relevant SEC filings for more detailed information about the proposed transaction.
In other recent news, Akari Therapeutics Plc has been grappling with a potential Nasdaq delisting due to an equity shortfall. Despite efforts to rectify the situation, the pharmaceutical company has not yet met the minimum $2.5 million stockholders' equity requirement. In response, Akari Therapeutics has elected to appeal the decision, hoping that its pending merger with Peak Bio, Inc. will aid in regaining compliance.
This merger with Peak Bio, a clinical-stage biopharmaceutical company, is anticipated to be finalized by the third quarter. It aims to combine Akari's novel therapies with Peak's oncology-focused antibody-drug-conjugate platform. However, there is no certainty that the merger will be successful or that it will secure the company's position on the Nasdaq exchange.
In a move to strengthen its strategic direction, Akari Therapeutics recently appointed Rob Bazemore, a seasoned professional with over three decades of experience in the life sciences sector, to its Board of Directors. Bazemore's extensive background in medical affairs, sales, and marketing is expected to bring valuable expertise to the company.
In addition to these developments, Akari Therapeutics successfully raised approximately $7.6 million in a private placement financing round. This reflects investor confidence in the company's direction amidst these recent developments.
InvestingPro Insights
As Akari Therapeutics (NASDAQ:AKTX) moves forward with its merger with Peak Bio, investors should consider some key financial metrics and insights provided by InvestingPro.
According to InvestingPro data, Akari's market capitalization stands at $29.05 million, reflecting its current position in the biotechnology sector. The company's stock has experienced significant volatility, with a 67.59% price increase over the last six months, contrasting with a 20.59% decline in the past month. This volatility aligns with the nature of small-cap biotech stocks, especially those undergoing major corporate changes like mergers.
InvestingPro Tips highlight that Akari holds more cash than debt on its balance sheet, which could be a positive factor for the merged entity's financial stability. However, it's important to note that the company is not profitable over the last twelve months, with an adjusted operating income of -$18.1 million. This financial situation underscores the importance of the merger in potentially strengthening the combined company's market position and research capabilities.
Another InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year. This insight aligns with the biotechnology industry's typical long development cycles and high research costs, emphasizing the strategic importance of the merger in pooling resources and expertise.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Akari Therapeutics, providing a deeper understanding of the company's financial health and market position as it approaches this significant corporate milestone.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.