By Anvee Bhutani
Liminatus Pharma said Tuesday it amended its merger agreement with InnocsAI LLC to allow the deal to close before shareholder approval, with closing now expected July 2.
InnocsAI equity holders will receive Liminatus common stock and non-voting convertible preferred stock, plus rights to 20% of future proceeds from certain strategic transactions. The deal is valued at about $320 million, based on a $0.20-per-share stock price.
The cancer immunotherapy company will issue common stock up to the Nasdaq-allowed maximum without shareholder approval-about 19.99% of shares outstanding. The rest will come as preferred stock, which can't convert to common shares until shareholders approve.
"This merger represents a transformational step in Liminatus' strategy to build a diversified oncology biotechnology company," said Chief Executive Chris Kim. InnocsAI develops next-generation cell therapies for cancer.
Write to Anvee Bhutani at anvee.bhutani@wsj.com