Seneca Biopharma Inc. (NASDAQ: SNCA) stock declined by 6.29% in the last trading close, whereas the SNCA stock price rises by 17.68% during after-hours. This change in SNCA stock is not followed by any recent news except for the significant past development i-e the merger agreement started between Seneca Biopharma and Leading Biosciences. This agreement has been acting as a catalyst for Seneca Stock price. Seneca Biopharma is a pharmaceutical company that deals with the development of treatments for high-risk diseases and to cater to other medical needs.
The merger agreement between SNCA & LBS
Seneca Biopharma entered into a merger agreement with Leading Biosciences in December 2020. Leading Biosciences is a private company that focuses on novel therapeutics aimed at enhancing human health by shielding the gastrointestinal mucosal barrier.
On December 17, SNCA officially announced its merger agreement, according to which Seneca is planning to sell off its rights to NSI-566. Also, the company will come under the banner of Palisade Bio, Inc. and will trade under the ticker symbol PALI on the Nasdaq Capital Market. This newly formed company will work on Leading’s pipeline phase-3 ready asset, LB1148. SNCA turned PALI after the merger, will test and evaluate LB1148 in clinical trials to see whether it can restore normal GI function after major surgery and reduce postoperative complications, including abdominal adhesions.
SNCA, on March 17, announced that leading independent proxy advisory firm Institutional Shareholder Services, Inc. has suggested the stockholders of SNCA support the merger by voting FOR it. The leading independent proxy advisory firm also said that the SNCA stockholders should vote FOR the proposals for:
- issuance of shares in connection with the merger
- reverse stock split
Seneca’s special meeting of stockholders is set to happen on March 24, 2021. Upon this support from Institutional shareholders services Inc., the chairman of SNCA said that they are incredibly thankful to ISS and also believe that this merger will be highly beneficial for SNCA as well as for its stockholders.