Following the merger deal, Akers has also signed a Securities Purchase Agreementwith certain accredited investors to raise $18 million.
Shares of Akers Biosciences, Inc. (AKER) soared on Thursday following the announcement of a merger deal with MyMD Pharmaceuticals. AKER spiked 30% at dayâ€™s close to $2.22, as the biotech is set to merge with MyMD.
As per the definitive merger agreement, the combined company will be renamed MyMDPharmaceuticals, Inc., upon closing of the transaction.MyMD will remain listed on the Nasdaq under the new ticker â€śMYMDâ€ť.
The combined company will work on the development and commercialization of MyMDâ€™s novel immunotherapy pipeline assets, MYMD-1. The combined technology of both companies will focus ondeveloping this first-in-class drug for the treatment of autoimmune and age-related diseases.
Phase 1 trials of MYMD-1 has already been completed. The drug obtained effective outcomes showing efficacy in immune system regulation. The lead molecule MYMD-1 stops the production of tumor necrosis factor alpha (TNF-Î±).
Following Phase 1 completion, the Phase 2 trials are expected to begin in the first quarter of 2020.
Moreover, MyMD is looking forward to developing another key asset, SUPERA-1R. A drug that targets key cannabinoid receptors through a patent-protected, and synthetic derivative of cannabidiol (CBD).
MyMD is set to be led by Chris Chapman who will be appointed as the President and Chief Medical Officer of the company. While, Adam Kaplin will be taking charge as the Chief Scientific Officer.
The merger transaction is expected to complete in the first half of 2021. MyMDâ€™s shareholders will own approximately 80%, whereas, Akersâ€™ shareholders will own 20% of the combined company.
Based upon the agreement deal, Akers will loan $3 million to MyMD in accordance witha secured promissory note. The note has a maturity till April 15, 2022.
In premise to merger deal, Akers Biosciences, Inc. (AKER) entered into a securities purchase agreementwith certain accredited investors. The company aims to raise $18 million by issuing9,765,933 common stock shares and accompanying warrants up to 9,765,933 of common stock shares. The stock will be issued at a per share price of $1.85, while the warrants will be exercisable at an exercise price of $2.06.
Akers Biosciences, Inc. (AKER)has decided upon its future and looks forward to the merger. Akersâ€™ board of directors are accused of possible fiduciary duty infringements and violations of law. WeissLaw LLPÂ is investigating possible breaches of fiduciary duty.