Following the announcement of a merger agreement, IMARA Inc. (Nasdaq: IMRA) increased 38.76% to $3.58 in current market value on Friday. The price of IMRA shares continued to swing between $3.30 and $3.68.
Which agreement has IMRA agreed to?
IMARA Inc. (IMRA) said yesterday that it and precision oncology startup Enliven Therapeutics, Inc. (Enliven), which is in the clinical stages, have signed a binding merger agreement. IMARA committed to combining Enliven in an all-stock deal. The merged business will concentrate on developing the pipeline of potential precision oncology products from Enliven.
- The merged business is anticipated to operate under the name Enliven Therapeutics, Inc., and trade on the Nasdaq Global Select Market under the ticker code ELVN after the merger is complete, which is contingent on the approval of IMRA’s and Enliven’s stockholders.
- Enliven also plans to raise about $165 million in concurrent private financing for the merger, which will be co-led by new investors Fairmount and Venrock Healthcare Capital Partners.
- Other new investors, such as Fidelity Management & Research Company, RA Capital Management, Frazier Life Sciences, and Commodore Capital, will also participate in the financing.
- Including OrbiMed, 5AM Ventures, Surveyor Capital (a Citadel subsidiary), Cormorant Asset Management, Roche Venture Fund, Sheatree Capital, Boxer Capital, Logos Capital, and Janus Henderson Investors, all of Enliven’s current investors will take part in the funding.
- The transaction, which is anticipated to finish right before the merger is completed, was oversubscribed, with over 60% of the total amount being allocated by new investors.
How will the transaction be carried out?
According to the provisions of the merger agreement, Enliven would cancel its shares of capital stock and become a wholly-owned subsidiary of Imara in exchange for IMARA Inc issuing pre-merger Enliven shareholders shares of IMRA common stock as merger compensation. Pre-merger Enliven investors, including those who bought Enliven shares in the private financing mentioned above, are anticipated to possess around 84% of the merged firm. Pre-merger IMARA Inc stockholders are anticipated to own roughly 16% of the combined company.
What will happen to IMRA?
IMARA Inc (IMRA) will become Enliven Therapeutics, Inc. upon the completion of the proposed acquisition. Sam Kintz, co-founder, and CEO of Enliven, together with other executives from the Enliven management group, will serve as the company’s CEO. The board of directors of the merged firm will be made up of all the members of Enliven’s board as well as one designated member of IMRA’s board, who is most likely to be Rahul Ballal, president and CEO of IMRA.