GTx, Inc. (NASDAQ: GTXI) is flying early on in the trading session today, and for good reason. The company announced that it has entered into a definitive merger agreement.
As you could imagine, the merger news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The merger news;
- what we’re seeing from GTXI stock as a result; and
- what we’ll be watching for ahead.
GTXI Announces Merger News
As mentioned above, GTx is having an incredibly strong start to the trading session this morning after announcing merger news. The announcement came about an hour ago via press release.
In the release, the company announced that it has entered into a definitive merger agreement. The agreement was signed with Oncternal Therapeutics.
Under the terms of the agreement, Oncternal will become the majority owner of outstanding common stock of GTXI. The company said that the proposed merger will create a publicly-traded, clinical-stage oncology company.
Once the transaction is complete, the combined company will be named Oncternal Therapeutics. The company also intends on changing its ticker symbol on the NASDAQ to ONCT once the transaction comes to a close.
In a statement, Robert J. Wills, PhD, Executive Chairman at GTXI, had the following to offer:
This transaction with Oncternal reflects the continued commitment of our management team and Board of Directors to deliver value to stockholders and make a difference in patients’ lives. Following a thorough review of strategic alternatives, we have determined that a reverse merger with Oncternal will enable GTx investors to participate in Oncternal’s broader pipeline of oncology opportunities, including product candidates designed to address rare disease indications, and enable the continued development of our first-in-class SARD technology by a company whose leadership has deep experience in developing oncology medicines.
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. When it comes to GTx, the news proved to be overwhelmingly positive. After all, the merger will provide shareholders with an immediate return on their investments.
So, it’s not surprising to see that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:58), GTXI is trading at $1.90 per share after a gain of $0.98 per share or 106.93% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on GTXI. In particular, we’re interested in following the story surrounding the company’s merger as the transaction is still subject to approval and customary closing conditions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!