CARGO Therapeutics Inc. ( CRGX ) saw its stock climb on Tuesday after the biotech firm announced a merger agreement with Concentra Biosciences LLC.

Under the terms of the agreement, Concentra will acquire CARGO for $4.379 in cash per share, along with a non-transferable contingent value right.

The CVR entitles shareholders to receive the full amount of CARGO's net cash above $217.5 million and 80% of net proceeds from the sale of certain product candidates within two years of the deal closing.

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CARGO’s board of directors unanimously approved the transaction, deeming it beneficial for shareholders following a strategic review assisted by advisors.

The deal involves a tender offer set to begin by July 21, 2025.

Concentra must secure tenders representing a majority of CARGO shares and confirm at least $217.5 million in net cash remains post-transaction costs for the deal to proceed.

In addition to the upfront cash payment, the CVR structure allows investors to benefit from potential upside tied to CARGO's remaining product assets and net cash position.

These rights could prove valuable depending on future asset dispositions within the two years post-merger.

Officers, directors and major stockholders holding roughly 17.4% of CARGO shares have signed agreements to tender their holdings and back the merger.

The transaction is expected to close in August 2025, following the successful completion of the tender offer and satisfaction of all closing conditions.

According to Benzinga Pro, CRGX stock has lost over 71% in the past year.

CRGX Price Action: CARGO shares are trading higher by 4.67% to $4.60 at publication on Tuesday.

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