03:37 PM EDT, 04/02/2024 (MT Newswires) -- Onconova Therapeutics ( ONTX ) shares fell 4.6% in recent Tuesday trading after the company announced a merger with closely held Trawsfynydd Therapeutics in an all-stock transaction.

The combined company will be named Traws Pharma and will begin trading on Nasdaq on Wednesday under the new ticker symbol TRAW.

Traws announced that it will raise $14 million in a committed private placement financing, expected to close Wednesday, from investment firms OrbiMed and Torrey Pines.

Once closed, the company will have $28 million in cash and cash equivalents to advance clinical studies.

The stockholders of Traswfynydd received 3.55 million shares of common stock issued by Onconova and newly issued series C non-voting convertible preferred stock. OrbiMed and Torrey Pines also got common stock and series C preferred stock as part of the private financing.

Price: 0.95, Change: -0.05, Percent Change: -4.55