Biotech innovation company having mission to improve immune system, Aditxt (NASDAQ:ADTX), on October 5, 2021 announced entering into transaction agreement for reaching definitive agreement by November 2021 end in order to acquire subsidiary AiPharma Global Holdings LLC, a firm focusing on discovering, developing as well as commercializing antiviral therapies.
AiPharma Global, biopharmaceutical companyholding directly, or through global affiliates worldwide (excluding Japan), rights to Avigan/Reeqonus/Qifendaas well as formulations of favipiravir, is being acquired under the binding agreement following Aditxt’s prior announcement on August 25, 2021.
If completed, the acquired entity will be a part of the business segment of Aditxt, which is focusing on monitoring and treatment of infectious diseases. Key terms of agreement are increase in amount of permitted borrowings under secured loan from Aditxt to AiPharma Global by $8.5 million, ensuring that the total availability will reach $15 million. Furthermore, Aditxtwill issue such number of shares of common stock yielding 65% of the number of Aditxt’s outstanding shares.
AditxtCo-Founder and CEO AmroAlbanna, said that the successful completion of acquisition would expedite commercialization plans in infectious disease space and position the firm with an at-home treatment for Covid-19.
Dr. AlessandroGadotti, CEO of AiPharma Group said that the combination of Aditxt and AiPharmawilladdress the key topics of the COVID-19 pandemic.
Market Reaction:
On Tuesday, ADTX stock surged 8.28% at $1.70 with more than 102.88 million shares, compared to its average volume of 5.27 million shares. The stock has moved within a range of $1.6100 – 2.1900 after opening the trade at $1.90.
