05:11 PM EST, 12/27/2024 (MT Newswires) -- Vincerx Pharma ( VINC ) agreed to be acquired by Oqory, a closely held pharmaceutical company developing antibody-drug conjugates for cancer treatments.

The companies entered into a binding term sheet for the proposed merger with Oqory investors expected to own 95% of the combined company with Vincerx shareholders owning the rest, Vincerx said Friday in a statement.

The combination will result in a minimum fully diluted equity value of $13.66 million for existing Vincerx shareholders. A concurrent offering of Vincerx equity securities of at least $20 million is required in the deal.

The deal also involves a two-tranche $1.5 million interim financing for Vincerx from certain Oqory investors with about $1 million provided Friday via the issuance of common stock and prefunded warrants.

Vincerx also said it is cutting costs and jobs. Ahmed Hamdy stepped down as chief executive officer and remains chairman, while Raquel Izumi stepped down as president and chief operations officer to become acting CEO in a consulting capacity.

The company announced the resignation of Alexander Seelenberger as chief financial officer with Kevin Hass, the vice president and controller, becoming acting CFO.

The merger is subject to customary closing conditions, including the continued listing of Vincerx's common stock on Nasdaq.

Vincerx shares doubled in recent after-hours activity after trading was halted at 4:01 p.m. ET.

Price: 0.4075, Change: +0.2135, Percent Change: +110.05