Cleveland BioLabs (CBLI) Stock Rockets On Merger News

Cleveland BioLabs CBLI Stock News

Cleveland BioLabs, Inc. (NASDAQ: CBLI) is screaming for the top in the market this morning, and for good reason. The company announced that it has entered into a definitive merger agreement. Here’s what’s going on:

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CBLI Stock Heads For The Top On Merger News

In the press release, Cleveland BioLabs said that the definitive merger agreement was signed with Cytocom, Inc. Under the agreement, the two companies will combine their business in an all-stock transaction. Importantly, the transaction has been approved by both parties.

Upon the closing the the transaction, CBLI said that Cytocom shareholders will have the majority stake in the combined business. The parties anticipate that the combined business will be listed on  the Nasdaq, and the initial Board of Directors for the combined company will consist of four members selected by Cytocom and three members selected by Cleveland BioLabs.

In the release, CBLI said that it, and Cytocom, beleive that the combined company will create near-term commercial opportunities in numerous areas of significan unmet medical needs. In particular, the combined company will continue to focus on acute radiation industry, oncology, infectious disease, inflammation and autoimmune-mediated conditions. The company also said that there are several clinical and regulatory milestones for investors to look forward to over the next year to year and a half.

Once the transaction is closed, the combined company will operate under the name Cytocom, Inc. The combined company will be run under the leadership of Cytocom’s management team, and both parties expect that the combined company will be positioned for consistent growth.

While the exact values under the merger agreement have not been shared, it is expected that the transaction will come to a close in the first quarter of 2021.

This Is Big News

The news released by Cleveland BioLabs this morning proved to be overwhelmingly positive. While we don’t know the exact value that was given to shares in the agreement, there’s a strong chance that a premium is involved. Moreover, with the merger, CBLI, a company working on ways to activate the immune system, is merging with a company that specializes in the area of immune-modulation. This is a match made in heaven!

Keep in mind, the immune therapy is no small market. In fact, the market generates more than a hundred billion dollars on an annual basis, and is expected to continue growing at a lightning pace. By combining knowledge, assets, and processes with Cytocom, Cleveland BioLabs is bringing itself closer to tapping into this massive market. All in all, CBLI stock is one to watch ahead.

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