By Colin Kellaher
Shares of AlloVir tumbled in premarket trading Friday after the immunotherapy company said it has agreed to an all-stock reverse merger with clinical-stage biopharmaceutical company Kalaris Therapeutics.
AlloVir said Kalaris investors will own about 75% of the combined company upon completion of the deal, slated for the first quarter of 2025, while its current shareholders would own about 25%.
Shares of the Waltham, Mass., company, which closed Thursday at about 98 cents, were recently down 27% at 71.5 cents in premarket trading.
AlloVir said the combined company, which will focus on diseases of the retina, will have about $100 million in cash at closing, and a runway to fund its operating expenses and capital-spending needs into the fourth quarter of 2026.
A reverse merger allows a private company to go public by merging with a public one at a lower cost than is involved in traditional initial public offerings.
AlloVir said the combined company will operate as Kalaris Therapeutics and trade on Nasdaq under the symbol KLRS.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
November 08, 2024 08:07 ET (13:07 GMT)
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