Angion Biomedica Corp (NASDAQ: ANGN) crashed more than 16% in pre-market trading on Tuesday after the clinical-stage biopharma company announced its merger with Elicio Therapeutics, a privately-held, clinical-stage biotechnology company.
Shares of ANGN have already tanked more than 50% in the past year.
This will be an all-stock transaction where Elicio will merge with a subsidiary of Angion. Following this merger, Elicio shareholders will own 65.5% of the newly-formed company while Angion stockholders will own the remaining 34.5%.
The merger will result in a publicly-listed company listed on NASDAQ which will focus on developing immunotherapies based on Elicio’s proprietary lymph node-targeting Amphiphile (AMP) technology.
The combined company will work on ELI-002, a therapeutic cancer vaccine currently enrolled in a Phase 1 trial for patients with pancreatic and colorectal cancer.
The merger is expected to close in the second quarter of this year and as a part of this agreement Angion has “committed up to $10 million in a bridge loan to Elicio, to be made in two installments, subject to certain conditions.”
