11:19 AM EST, 11/13/2024 (MT Newswires) -- Pulmatrix ( PULM ) said Wednesday it has reached a merger agreement with Cullgen, a clinical-stage biopharma focused on targeted protein degradation for cancer and other diseases.

The merger, expected to close by March 2025, includes Pulmatrix ( PULM ) shareholders receiving a special cash dividend based on the company's net cash exceeding $2.5 million at closing, the company said.

Upon closing, Pulmatrix ( PULM ) stockholders will own 3.6% of the combined company, which will operate as Cullgen Inc. and be listed on Nasdaq. Pre-merger Cullgen stockholders will own the remaining stake.

Cullgen Chief Executive Ying Luo will lead the executive officers of the combined company, which is expected to have cash and cash equivalents of up to $65 million, Pulmatrix ( PULM ) said.

Shares of Pulmatrix ( PULM ) jumped more than 35% in recent trading.

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