Intec Pharma Ltd (NTEC) shares soared 19.89% in after-hours on Wednesday, July 28, 2021, and closed the daily trading at $10.97 per share. Earlier in the regular trading hours, NTEC’s stock gained 1.10%. NTEC shares have fallen 74.09% over the last 12 months, and they have moved down 36.81% in the past week. Over the past three months, the stock has lost 49.39%, while over the past six months, it has declined 46.18%.
Let’s see what’s going on recently with NTEC?
NTEC $30 Million Private Placement
On July 26, 2021, Intec Parent, Inc which is a wholly-owned subsidiary of NTEC Stock, entered into a securities purchase agreement with a single, healthcare-focused institutional investor to raise $30 million in a private placement.
The private placement is being consummated to satisfy one of the closing conditions of the previously announced reverse merger with Decoy Biosystems, Inc.
Filing of NTEC 2020 Annual Report
On March 16, 2021, Intec Pharma Ltd filed its annual report on Form 10-K for the year ended December 31, 2020, with the U.S. Securities and Exchange Commission.
NTEC facing a legal fight over its merger with Decoy Biosystems
Intec Pharma Ltd is facing legal investigations about its merger with Decoy Biosystems.
WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Intec Pharma Ltd in connection with the proposed acquisition of the company by Decoy Biosystems, Inc.
Background of NTEC Stock Merger Agreement with Decoy Biosystems
On March 15, 2021, NTEC stock entered into a definitive agreement with Decoy Biosystems, Inc.
The combined company will advance its immunotherapy platform to battle a variety of tumour types and chronic viral infections.
The former Decoy stockholders are expected to own approximately 75% of the combined company, and the Intec shareholders are expected to own approximately 25% of the combined company, upon completion of the merger.
Jeffrey Meckler will be the Chief Executive Officer and Michael Newman will be the Chief Scientific Officer of the new combined company. Dr Roger Pomerantz is expected to be the chairman of the new company. The new combined company will consist of eight members, including five members of Intec Pharma’s current board and three members of Decoy’s current board.
NTEC Stock Research collaboration with GW Pharma
On December 9, 2020, Intec Pharma Ltd entered into a feasibility agreement with GW Research Limited (GW), London, the U.K. to explore using the Accordion Pill platform for the undisclosed research program.
Additional details of the agreement were not disclosed.
Conclusion
Intec Pharma Ltd facing some legal issues but we think that the merger will go ahead and at the moment we had no reason behind its exceptional performance on Wednesday.
