HOTH - Hoth stock rises ~10% on plans to merge with Algorithm Sciences

2023-04-26 09:48:42 ET

• Hoth Therapeutics ( NASDAQ: HOTH ) stock rose ~11% on Wednesday after the company said it is merging with Algorithm Sciences.
• As per the letter of intent, Hoth shareholders are expected to own ~14% of the combined company, while Algorithm shareholders are to own the remaining ~86%.
• The combined company will be named Algorithm Sciences.
• Algorithm's pipeline is focused on Pulmonary Arterial Hypertension (PAH) —  a type of high blood pressure which affects the arteries in the lungs and the right side of the heart.
• Mike Tilton, CEO of Algorithm, will be CEO of the combined company, while David Cavalier will serve as CFO. Algorithm's current chairman Anthony Zook will be nominated as chairman of the combined company.
• "We are thrilled with the progress of our development program and look forward to achieving our near-term goal of filing an Investigational New Drug (IND) Application with the FDA," said Tilton.
• The boards of both companies have approved the letter of intent.
• The transaction is subject to due diligence to Hoth's satisfaction and execution of definitive agreement, among other things.

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