10:47 AM EST, 03/06/2024 (MT Newswires) -- BiomX ( PHGE ) shares jumped more than 130% in recent Wednesday trading after the company said it has entered into a merger agreement with Adaptive Phage Therapeutics to create a phage therapy company.

The acquisition is structured as a stock deal, with all APT shares to be exchanged for about 9.2 million BiomX ( PHGE ) shares, 40,471 shares of series X preferred stock convertible into some 40.5 million shares of BiomX ( PHGE ) stock and warrants exercisable for around 2.2 million BiomX ( PHGE ) shares, the company said.

Concurrently with entering into the merger agreement, BiomX ( PHGE ) said it has struck a deal for a private placement investment with existing and new investors to raise $50 million to advance two lead product candidates.

The firm said the investors would buy 216,417 shares of series X preferred stock and warrants to buy up to about 108.2 million BiomX ( PHGE ) shares at a combined price of $231.10 per share of preferred stock and an accompanying warrant to buy 500 shares.

BiomX ( PHGE ) will own about 55% and APT stockholders will own around 45% of the combined entity after the deal, the firm said.

Price: 0.55, Change: +0.32, Percent Change: +139.12