Cellect Jumps on Quoin Hookup
Cellect Biotechnology Ltd. (NASDAQ:APOP) rose in Thursday trading, on word of a strategic merger with Quoin Pharmaceuticals.
Under the terms of the Agreement, Cellect shareholders will retain approximately 25% of the combined shares before investment while the shareholders of Quoin will receive shares of Cellect common stock representing approximately 75% of the pre-investment number of shares. Cassel Salpeter & Co., an independent investment banking firm, provided a fairness opinion with respect to the 1:3 ratio of shares between Cellect original shareholders and Quoin.
In connection with the merger, Quoin has secured $25 million in committed equity funding from Altium Capital, a highly regarded institutional healthcare investor. Quoin has also negotiated an $18.5-million venture loan from a leading U.S. commercial bank. The merger agreement provides for certain dilution protections for the pre-closing Cellect shareholders in connection with such equity financing.
Quoin is a specialty pharmaceutical company focused on rare and orphan diseases. Quoin’s leadership team is made up of industry veterans, with extensive relevant executive experience and proven records of recent success in the pharmaceutical industry.
Quoin CEO Michael Myers, "This strategic merger provides Quoin with additional capital and an exciting opportunity to continue advancing our innovative product pipeline.
"As we work to build a strong foundation for growth, we remain committed to addressing the unmet medical needs of the rare disease communities. We look forward to accelerating the clinical development of our programs and delivering enhanced value to our shareholders."
APOP shares took on $3.44, or 98.6%, in early Thursday trading to $6.93.
Related Stories
