4D to receive $14.6m in merger with Longevity Acquisition Corporation

Francesca Morgan
RNS Newswire
10:19, 22nd October 2020

4D Pharma (AIM:DDDD FOLLOW) has announced its intention to merge with Longevity Acquisition Corporation (NASDAQ:LOAC) where it will receive a cash injection of US$14.6 million.

The pharmaceutical company said the merger is priced at an agreed valuation of 110p per 4D Ordinary Share, representing an 18% premium to its last closing price of 0.932p.

The enlarged group expects to launch a new American Depositary Receipt programme and will apply to admit its American Depositary Shares for trading on NASDAQ under 'LBPS'. Meanwhile, 4D will also maintain its current listing on AIM, under the ticker symbol 'DDDD'.

Longevity shareholders will own c.13.1% of the merged company’s equity while 4D will own the rest. The enlarged listing on NASDAQ is expected to become effective in early 2021.

"Despite the tremendous operational and economic challenges in 2020 created by the global pandemic, 4D has made significant strides on a number of fronts,” said CEO, Duncan Peyton.

He noted in particular 4D’s presentation of clinical data for Live Biotherapeutics for treating cancer in combination with MSD's Keytruda®, as well as positive Phase II results for the first drug candidate able to treat both IBS-C and IBS-D, two strains of irritable bowel syndrome. 

Shares in 4D Pharma have soared in value by over 100% since August 2020 to open 16.68% higher this morning at 108.75p following the announcement of the proposed merger.

DDDD price chart

In addition, he said the Company was able to quickly instigate a Phase II clinical trial in COVID-19 based on a ‘detailed understanding’ of its asthma program earlier this year.

He highlighted that the Company believes that a NASDAQ Listing will allow 4D to capitalise on increased interest from US healthcare investors in recent years and provide access to a much larger pool of specialist capital, thereby increasing our global profile and exposure. 

“The Merger will accelerate and de-risk 4D's admission to NASDAQ, while providing immediate access to additional funds to support our pipeline,” said Peyton, acknowledging that NASDAQ is “an attractive market for growing, innovative biotech companies.”

"We are truly excited about the Merger with 4D. Our team reviewed many opportunities in a variety of industries and determined that the Transaction with 4D would provide the greatest value to our shareholders. 4D is developing promising biotherapeutics to address unmet medical needs,” commented Matthew Chen, Chief Executive Officer of Longevity. 

For more news and updates on 4D PharmaFOLLOW

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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