CLXT - Calyxt surges on merger with agriculture gene editing company Cibus

The shares of plant-based synthetic biology company Calyxt, Inc. ( NASDAQ: CLXT ) climbed ~88% pre-market Tuesday after announcing a merger agreement with Cibus, an agricultural technology company focused on plant-based gene editing.

"Cibus is an excellent strategic fit for Calyxt given our complementary technology platforms, and the merger provides a great opportunity to leverage multiple synergies to drive innovation and shareholder value," Chief Executive of Calyxt ( CLXT ) Michael A. Carr remarked.

Per the terms, Calyxt ( CLXT ) and Cibus will merge in an all-stock transaction, following which Calyxt ( CLXT ) shareholders are expected to own approximately 5% of the combined company, subject to adjustments.

The combined company will be renamed Cibus Inc. and trade on the Nasdaq Capital Market. Cibus Co-Founder Rory Riggs will serve as its CEO and Chairman, backed by Cibus' leadership team.

Boards of directors of both companies have unanimously approved the deal, and Calyxt's largest shareholder, French biotech Cellectis S.A. ( NASDAQ: CLLS ) ( OTCPK:CMVLF ), and the majority of Cibus' shareholders have signed agreements in favor of the transaction.

The merger is expected to close in Q3 2022, subject to closing conditions, including the approval of Calyxt ( CLXT ) shareholders.

Seeking Alpha contributor issued a Hold rating on Calyxt ( CLXT ) in 2022, noting that "the stock is speculative and very risky without meaningful commercial partnerships and funding."

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