Shares of 4d Pharma PLC (LON: DDDD) surged 6.87% today after the company announced that it has filed a registration statement in the US and expects to launch a new American depositary receipt programme tied to its proposed Longevity Acquisition Corp merger.
Investors cheered the move, which saw 4D Pharma shares surge from a crucial support level on the news.
The biotechnology company announced plans for its merger with Longevity Acquisition Corp, a special purpose acquisition company listed on the NASDAQ back in October and the merger appears to be in the final stages.
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4D Pharma intends to launch its ADR programme and apply to have them admitted for trading on the NASDAQ. Finally, the company’s shareholders then have to approve the issuance of 13% of the shares in the larger company to Longevity shareholders.
The dual listing of 4D Pharma shares in the US will give the company access to a large pool of sophisticated investors who are willing to invest in biotech companies that are yet to generate steady revenues.
Given that US equity markets are much larger than the UK markets, the company hopes to access a larger pool of capital to fund the research and development of its innovative therapies based on live therapeutics.
4D Pharma share price
4D Pharma shares surged 6.87% today to trade at 96.4p having rallied from yesterday’s closing price of 90.2p.
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