4D pharma, the listed Leeds-headquartered pharmaceutical company, has merged with Longevity, a special purpose acquisition company (SPAC), in a deal worth up to $37.6 million.
As a result of the merger, 4D pharma plans to launch a new NASDAQ-listed American Depositary Share (ADS) programme and will immediately be admitted to trading on NASDAQ upon completion.
4D pharma will become dual-listed and ordinary shares will continue to be traded on AIM.
4D pharma will benefit from the $14.6 million cash held by Longevity. This extends 4D pharma’s current operational runway into Q3 2021. In addition, 4D pharma may also benefit from the proceeds of warrants to purchase Longevity shares worth up to $23 million.
It is currently planned for the merger to be completed and effective in early 2021, and 4D pharma ADSs will begin trading on NASDAQ immediately following completion. This is subject to approval of 4D pharma and Longevity shareholders, and the SEC review process.
“A NASDAQ listing allows 4D pharma to capitalise on increased interest from US healthcare investors in recent years, providing access to a much larger pool of specialist capital, and increasing our global profile and exposure. NASDAQ is a very positive environment for growing, innovative biotech companies,” said Duncan Peyton, CEO of 4D pharma.
“The merger accelerates and de-risks our entry into the US, while providing immediate access to additional funds to support our pipeline. The increased exposure of a US listing will also support ongoing partnering discussions across our pipeline.”