Apexigen (NASDAQ:APGN) stock is rising higher on Wednesday following news of a deal with Pyxis Oncology (NASDAQ:PYXS).
This deal has Pyxis Oncology agreeing to acquire Apexigen for 0.1725 shares of PYXS stock for each share of APGN stock. This implies a value of 64 cents for each share of APGN. That represents a 60% premium to the stock’s closing price on Tuesday. It also represents an enterprise value of around $16 million.
Pyxis Oncology expects to issue 4 million of PYXS stock to fuel its purchase of Apexigen. When the deal closes, it will result in current APGN shareholders owning 10% of the combined company. The remaining 90% will belong to current PYXS shareholders.
Xiaodong Yang, M.D., Ph.D., CEO of Apexigen, said this about the news.
“With Pyxis Oncology’s strong cash position and its commitment to further sotigalimab’s development, we believe that this transaction will greatly enhance the opportunity to efficiently advance sotigalimab for patients suffering from a variety of difficult-to-treat cancers.”
More APGN Stock Deal Details
The Boards of Directors at both companies have already approved the acquisition deal. Now it just needs to complete customary closing conditions. That includes getting approval from shareholders and regulators. If all goes well, the two companies expect the transaction to close by mid-2023.
APGN stock is seeing heavy trading today as some 3 million shares change hands. For comparison, its daily average trading volume is closer to 109,000 shares. APGN stock is up 31% Wednesday morning.
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