Seneca BiopharmaInc (SNCA) stock recently traded at $1.69 which is a 0.59% downward movement. The SNCA stock previously closed at $1.70. SNCA stock also soared in the pre-market trading session by 8.88% at the time of writing.
There is hype around the video released on 2nd April in which the Leading Biosciences, Inc. explains a detailed approach to a proposed merger with Senenca BiopharmaInc (SNCA). This is what has shareholders and investors of SNCA stock excited. The recent positive movement in the trading session could be a result of this proposed merger.
Seneca’s operational background
Seneca (SNCA) is a clinical-stage biopharmaceutical company which is specializing in the development of novel and uniquely approached treatments for the diseases that have high unmet medical need. The company has an experimental drug by the name of NSI 566 which is based on stem-cell therapy. This drug is for the potential treatment of ALS (Atmyotrophic Lateral Schlerosis). Furthermore, SNCA stock believes that the potential usage of NSI 566 can be used for the treatment of chronic spinal cord injury and the recovery of motor deficits after an ischemic stroke.
Leading BioSciences’s focus on GI mucosal barrier
Leading BioSciences, Inc. is a late-stage biopharmaceutical company that specifically designs novel therapeutics to improve the overall human conditions and health. LBS aims to do this through the therapeutic protection of the gastrointestinal (GI) muscosal barrier. After major surgery, the patients face an interruption of GI function (ileus) which can lead to a delay in recovery and extension in the hospital stay. This adds a high amount of medical and health bills for the patient.
The therapeutics LBS are working on is aimed to reduce these interruptions of Ileus function and also reduce the need for post-operative recovery treatments and visits. Furthermore, there are many other chronic problems associated with GI mucosal barrier that LBS wish to address with its novel treatments.
The definitive agreement details of the merger
The video message released by Leading BioSciences’ CEO, Tom Hallam, provides a compelling investment thesis as to why a merger with Seneca BioPharma, Inc. is highly beneficial and mutual for the company and shareholders. SNCA stock had entered into a definitive merger with LBS on 17th December 2020. As part of the merger, SNCA wishes to sell off its rights to NSI-566. Upon completion of the merger, the combined company will have a new name under which it will operate – Palisade Bio Inc. This new name will have a ticker symbol PALI and trade on the NASDAQ market.
CEO of LBS gives incentives to SNCA stockholders for merger voting
Tom Hallam has given a brief overview of the vast market potential for the combined company Palisade Bio Inc. and has urged the SNCA stock shareholders to vote for the merger. This was guided to be done on April 9, 2021, on the virtual Special Shareholder Meeting that can be tracked. In detail, the CEO discussed about the long term overall degradation of SNCA stock’s performance which has the stockholders upset. He then proposes a beneficial opportunity for the stockholders of SNCA that they can maximize their investment value through Palisade Bio yet maintaining an 80% interest in the Seneca’s legacy asset through Contingent Value Right (CVR). This can be only done if stockholders vote for the proposed merger and each proposal at the meeting, as well as the condition of reverse split stock for closing the deal.