Shares of Granite Stock ARCA Biopharmaceuticals Soar on Heel Deal: Details

ARCA Biopharmaceuticals, Inc.(NASDAQ Resonance: ABIO) andOruka TherapeuticsThe Company has entered into a definitive agreement to carry both companies in an all-stock transaction.

Oruka Therapeutics is a privately held biotechnology company focused on the development of novel biologics for the treatment of chronic skin diseases, including plaque psoriasis.

The combined entity will focus on advancing Oruka's product line, including ORKA-001 (IL-23p19 inhibitor) and ORKA-002 (IL-17A/F inhibitor).

Upon completion of the carpet, the Carpet Company intends toOruka Therapeutics IncThe Company operates under the name of "KRI" and trades on NASDAQ under the symbol "KRI".ORKA".

In support of the carpet, Oruka has secured a private investment commitment of US$275 million. The financing is expected to close immediately prior to the completion of the carpet.

The remaining cash balance of the Company after the carriers is expected to fund Oruka's operations through 2027 and support the progress of ORKA-001 and ORKA-002 through the initial clinical review.

Both projects are expected to enter clinical trials in 2025, with preliminary pharmacokinetic data from ORKA-001 expected to be released in the second half of 2025 at the earliest.

Pursuant to the terms of the Carpet Name Agreement, the pre-Carpet Name shareholders of ARCA are expected to own approximately 2.381 TP3T of the post-Carpet Name Company and the pre-Carpet Name shareholders of Oruka are expected to own approximately 97.621 TP3T of the post-Carpet Name Company.

ARCA expects to contribute $5.0 million to the post-party entity and expects to pay approximately $20.0 million in dividends to the pre-party ARCA shareholders by the end of the calendar year.

The transaction is expected to close in the third quarter of 2024.

Price Trend: As of Wednesday's close, ABIO shares were up 106.40% at $3.49.

Image courtesy of Shutterstock

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This article, "Small-Cap ARCA BiopharmaStock Soars On Merger Pact: Details" originally appeared on Benzinga.com.

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