Aditxt Inc. (ADTX) stock prices soared by 89.90% shortly after market trading commenced on August 25th, 2021. This brought the price per share up to USD$3.74 early on in the trading day.
ADTX Stock Signs LOI
August 25th, 2021 saw the biotech innovation company announce having signed a letter of intent (LOI) to acquire a biopharmaceutical company. In the interest of pursuing their mission to improve the health of the immune system across healthcare patients, the collaborative partners will be seeking to commercialize the target company’s Covid-19 antiviral oral therapy. The partnering company is currently marketing and selling its products under emergency and compassionate use, the standard of care, as well as full approval in various countries beyond the North American markets.
Conditions of the Transaction
The acquisition is subject to the satisfaction of various conditions, including but not limited to adequate due diligence, the negotiation, and execution of definitive agreements. The approval of the board of directors and shareholders of each company are also factors that the transaction is contingent on, as is approval by Nasdaq to list shares proposed to be issued in the transaction. The two companies have agreed to an exclusivity period that will last until the end of September 2021, hoping to start settling the definitive agreement accordingly.
ADTX Stock’s Transaction Details
Key terms of the proposed transactions were outlined in the letter of intent. These include the completion of a proposed secured loan from ADTX stock to the company. The loan will be in the amount of USD$6.5 million and will be released by August 31st 2021. Another key term of the proposed transaction is the issuance of common stock in a number that yields half of the number of the company’s outstanding shares after the closing of the transaction.
Scope of Partnership
The company has been taking steps to expand the global footprint of its immune therapeutic and monitoring platforms. ADTX stock is looking forward to the upcoming transaction, which will serve as a complementary strategic fit for the company should it be successfully executed.
Future Outlook for ADTX Stock
The company reported a strong quarter, consolidated with the recent development of its collaboration with the potential biopharmaceutical partner. ADTX stock is poised to capitalize on the opportunities this transaction will afford it. Current and potential investors are confident in management’s ability to leverage the resources at their disposal. This is hoped to result in significant and sustained increases in shareholder value.