Edge Therapeutics Inc (NASDAQ: EDGE) is rocketing for the top early on in the pre-market this morning, and for good reason. The company announced merger news that’s leading to excitement among investors and sending the stock soaring. Today, we’ll talk about:
- The merger;
- what we’re seeing from EDGE stock as a result; and
- what we’ll be watching for ahead.
EDGE Announces Merger News
As mentioned above, Edge Therapeutics is having an incredibly strong start to the trading session today after announcing merger news. In a press release issued early this morning, the company said that it would be merging with PDS Biotechnology Corporation. The transaction, which will end with PDS stockholders owning 70% of the combined company and EDGE holders owning 30% has been approved by the boards of directors of both companies.
Through the merger, EDGE and PDS will create a combined company with a growing pipeline of next generation cancer immunotherapies based on the Versamune technology platform. The combined company will also have sufficient cash to make it through operations into the year 2020.
In a statement, Frank K. Bedu-Addo, Ph.D., Co-Founder, President and CEO at PDS, had the following to offer:
We believe that the proposed merger of PDS Biotechnology and Edge Therapeutics will create a combined company that can generate shareholder value through our proprietary Versamune® platform and a promising pipeline of next generation immunotherapies targeting several cancer markets including the multi-billion-dollar HPV-induced cancer market… We expect that the combined company will have the financial resources and experienced leadership to accomplish our key near-term objectives: first, to initiate multiple late-stage clinical studies for our lead product candidate PDS0101; and second, to further advance our preclinical programs toward the clinic.
The above statement was followed up by Brian A. Leuthner, President and CEO at EDGE. Here’s what he had to say:
Since announcing our plans to seek strategic alternatives for Edge Therapeutics, our priority has been to identify a merger candidate that we believe has the potential to continue our mission to help patients and to provide meaningful value to our stockholders… Following a rigorous evaluation and diligence process, the Edge Board of Directors has concluded that a merger with PDS Biotechnology, with a clinical-stage product candidate that has demonstrated the potential in patients to address important limitations of current immuno-oncology approaches, a growing development pipeline, and a novel next generation technology, offers an excellent opportunity to create such value. We believe that PDS represents an attractive merger partner for Edge as PDS prepares to advance multiple late-stage clinical programs through key milestones in 2019 and beyond.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Edge Therapeutics, the news proved to be overwhelmingly positive. After all, this merger will provide the company with key funding that it needs for operations. On top of that, the merger greatly expands the company’s pipeline and opens several opportunities for growth down the line. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:29), EDGE is trading at $0.87 per share after a gain of $0.17 per share or 24.29% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on EDGE. In particular, we’re interested in following the story surrounding the company’s merger and how that merger changes the game ahead. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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