NLS Pharmaceutics Ltd. shares are moving higher on Monday after the company announced it entered into a definitive merger agreement with Kadimastem.

What To Know: The combined company aims to advance NLS’s Dual Orexin Agonist (DOXA) platform and Kadimastem’s allogenic cell therapy program, which focuses on treatment candidates primarily targeting diabetes and amyotrophic lateral sclerosis (ALS).

As a part of the merger, NLS will issue shares of its common stock to Kadimastem’s shareholders, with an initial target distribution of 85% to Kadimastem shareholders and 15% to NLS shareholders in exchange for all of Kadimastem’s shares. The share distribution may be adjusted according to the terms of the merger agreement.

“We are pleased to announce our merger with NLS and believe that the exposure of the combined company’s assets to the U.S. capital markets through our new Nasdaq listing will enable us to develop our portfolio and increase Kadimastem shareholder value,” said Kadimastem’s executive chairman and president Ronen Twito.

“We remain focused on initiating our Phase IIa multi-site clinical trial of AstroRx, a product candidate for the potential treatment of ALS, which is planned to be initiated following the closing of the merger, and jointly progressing our diabetes program IsletRx with our U.S. based partner to a pre-investigational new drug (IND) submission with the U.S. Food and Drug Administration in the first quarter of 2025.”

The merger is expected to close in Jan. 2025, pending approval of shareholders from both companies along with Nasdaq approval.

See Also: Elon Musk’s Mother Suggests She May ‘Vote Ten Times’ – Or More

NLSP Price Action: At the time of writing, NLS Pharmaceutics ( NLSP ) stock is moving 9.72% higher at $3.95, according to data from Benzinga Pro.

Image: Photo by roberto-sorin for Unsplash