ARPO - Aerpio Pharma shares surge 20% on merger deal with Aadi Bioscience

Aerpio Pharmaceuticals (ARPO) soars 20% premarket after entering into a definitive merger agreement with and privately-held Aadi Bioscience.Under the terms of the merger agreement, shareholders of Aadi will receive shares of newly issued Aerpio common stock.On a pro forma basis, Aadi and Aerpio shareholders will own ~66.8% and ~33.2% of the combined company, respectively.The transaction is expected to close in Q3 2021.Following the proposed merger, Aerpio will change its name to “Aadi Bioscience” and the combined public company will focus on advancing Aadi’s lead product candidate, Fyarro. In support of the merger, Aerpio has entered into subscription agreements to raise $155M in PIPE financing, which is expected to be consummated concurrently with the closing of the merger.Proceeds from the PIPE financing will be used for commercialization and advancement of Fyarro.Following the closing of the PIPE financing, Aerpio shareholders will own ~14.7% of the combined company.

For further details see:

Aerpio Pharma shares surge 20% on merger deal with Aadi Bioscience