Innovate Biopharmaceuticals (INNT) Stock: Here’s Why It’s Climbing!

Innovate Biopharma INNT Stock News

Innovate Biopharmaceuticals Inc (NASDAQ: INNT) is flying in the market today. However, if you’re looking for press releases, you’re not going to find any. Nonetheless, there are a couple of SEC filings that took place yesterday that seem to be leading to the gains.

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INNT Stock Heads Up On Merger News

In 2019, we heard of an agreement between Innovate Biopharmaceuticals, RDD Pharma and OrbiMed Israel Partners that would lead to a merger. Following the merger, the company would be renamed 9 Meters Biopharma, Inc.

However, the INNT merger was expected to take place by the end of 2019. Unfortunately, there have been delays. Nonetheless, in an SEC filing yesterday, the company announced that it entered into a letter agreement with all parties.

The agreement surrounds the waiver of certain terms of the Plan of Merger and Reorganization. Considering the stage of the filing here, these are likely the terms that have led to the delay in closure of the agreement. As such, INNT investors are expecting to see the closing come soon.

Special Meeting Of Stockholders

In a second filing, Innovate Biopharmaceuticals announced that it would be holding a Special Meeting of Stockholders. The meeting will take place on February 14, 2020 at 11:00 AM. At the meeting, shareholders will vote on the following:

  • The issuance of shares of common stock having to do with the Agreement and Plan of Merger and Reorganization.
  • The potential issuance of 20% or more of the Company’s issued and outstanding common stock.
  • The amendment to the amended and restated certificate of incorporation to effect a reverse stock split.

Putting It All Together

The bottom line here is that INNT is preparing to close this merger. The filings with the SEC yesterday show that the company is taking all necessary steps. Considering the filings and agreement, I’m expecting that the merger will close by the end of February.

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