ANCN Stock Price Increases Over 30% Pre-Market: Why It Happened

By Amit Chowdhry ● Mar 16, 2021
  • The stock price of Anchiano Therapeutics Ltd. (Nasdaq: ANCN) increased by over 30% pre-market. This is why it happened.

The stock price of Anchiano Therapeutics Ltd. (Nasdaq: ANCN) increased by over 30% pre-market. Investors are responding to Anchiano Therapeutics Ltd. (Nasdaq: ANCN) and Chemomab Ltd., a clinical-stage biotech company focused on the discovery and development of innovative therapeutics for fibrosis-related diseases with high unmet need, announcing that Anchiano’s shareholders voted to approve the contemplated merger with Chemomab and the issuance of Anchiano American Depositary Shares (ADSs) in connection with the pending merger. And shareholders also approved a reverse split of Anchiano’s common shares.

The companies also announced the pricing of a private investment of $45.5 million into the combined company led by new and certain existing investors of Chemomab including Cormorant Asset Management, OrbiMed, Peter Thiel, Christian Angermayer’s Presight Capital and Apeiron Investment Group as well as other healthcare-focused and institutional investors. The private financing consists of the sale of 41,908,232 ADSs and 4,190,819 accompanying warrants at a purchase price of $1.08443 (pre reverse split to take effect immediately prior to the closing of the merger). The warrants will have an exercise price of $1.08443 and will expire five years from the date of issuance.

Oppenheimer and Co. Inc. served as the sole placement agent for the financing.

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