02:32 PM EDT, 07/22/2024 (MT Newswires) -- Hepion Pharmaceuticals ( HEPA ) shares fell nearly 19% in recent Monday trading after the company said that it entered a merger deal with Pharma Two B, a private drug development company.

Per the agreement, Hepion will become a wholly-owned subsidiary of the Israeli company. The combined company will continue to operate under "Pharma Two B" name. The merger is set to close in Q4, the company said.

Pharma Two B plans to file a registration statement with the US Securities and Exchange Commission to issue shares to Hepion's shareholders and intends to list its shares on Nasdaq under the ticker symbol "PHTB".

The merger is valued at about $58.5 million in estimated equity and Pharma Two B expects to receive up to $11.5 million in gross cash proceeds when the deal closes. Net proceeds will be used for further development of parkinson's disease treatment candidate P2B001, and repay up to $2.9 million of Hepion's senior unsecured notes.

Price: 0.83, Change: -0.19, Percent Change: -18.63