MLND - Millendo stock slumps on merger deal with Tempest Therapeutics

Millendo Therapeutics (MLND) and privately-held Tempest Therapeutics have inked an agreement under which Millendo will merge with Tempest in an all-stock transaction.Millendo and pre-merger Tempest stockholders will own ~18.5% and ~81.5% of the combined company, respectively.Upon closing of the transaction, Millendo will be renamed Tempest Therapeutics and trade under the ticker symbol "TPST". Tempest has secured commitments from a premier syndicate of healthcare investors for a $30M PIPE financing.The financing and merger are expected to close in H1 2021. The net proceeds are expected to fund the further development of Tempest’s three oncology programs and operate the company into early 2023.The combined company will focus on advancing Tempest’s oncology pipeline of small molecule therapeutics that have the potential to address a wide range of tumors. Millendo and Tempest will host a conference call today, at 8:30 a.m. ET, to discuss the merger.MLND shares down 14% premarket, trading at $1.88.

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Millendo stock slumps on merger deal with Tempest Therapeutics