Shares of pharmaceutical firm 4D Pharma (LON: DDDD) are up 9% on Monday after the company said it has now completed its merger with US investment firm Longevity Acquisition Corporation.
The “transformational milestone” has allowed the company to trade on the Nasdaq stock market under the ticker symbol ‘LBPS’. Longevity’s $14.8 million in cash is also now available to 4D.
Additionally, 4D said that gross proceeds from a private placement were now $25 over $25 million after Merk Sharp & Dohme Corp subscribed for 654,023 ordinary shares, raising an additional $1 million.
4D Pharma’s share price currently trades at 146p, up 9.36% from Friday’s close at 133.5p.
“The closing of 4D pharma's merger with Longevity represents a transformational milestone for the Company,” commented Duncan Peyton, Chief Executive Officer, 4D pharma.
“Becoming a dual-listed company both in the UK and the US broadens our global reach. In conjunction with the NASDAQ listing, the closing of the merger and concurrent fundraise give 4D pharma an additional $40 million of capital and puts the company in a very strong financial position to execute across our robust pipeline,” he added.
In connection with the merger, 4D has also issued new warrants convertible into ordinary shares, which, if exercised, would bring in an additional $29 million.
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