FSTX - F-star Therapeutics gains after buyer Sino Biopharma cancels Shanghai listing

F-star Therapeutics ( NASDAQ: FSTX ) rose 6% as buyer Sino Pharmaceutical ( OTCPK:SBHMY ) canceled a planned Shanghai stock exchange listing.

The termination of the planned listing on the exchange for Sino Pharmaceutical comes as the company's planned acquisition of F-star ( FSTX ) has been delayed due to the Committee on Foreign Investment in the United States review of the deal.

Traders on Wednesday pointed to a Twitter account that highlighted the cancellation and said the timing is "highly suspicious" given that the company is working with CFIUS to negotiate the merger conditions. "If this one of conditions, then this is very bullish."

F-star ( FSTX ) shares surged 20% last Wednesday after F-star announced it was extending the termination date for its sale as it tries to hammer out negotiations with CFIUS on terms for a mitigation agreement. The walk date was extended until Friday. The move last Wednesday partly reversed a 26% drop on Jan. 26 after a report that That the buyer of the company didn't expect a favorable outcome from CFIUS.

F-star Therapeutics plunged 40% on Dec. 29 after CFIUS issued an interim order blocking its planned sale to Sino Biopharmaceutical ( OTCPK:SBHMY ).

China's Sino Biopharmaceutical's ( OTCPK:SBHMY ) unit invoX Pharma agreed to acquire F-star ( FSTX ) in a $161M all-cash deal in late June.

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