Innovate Biopharma jumps on deal to acquire Israel's RDD Pharma

9 Meters Biopharma

07/10/2019 12:31

** Drug developer's shares  INNT.O  up 12.8% at $1.15
premarket     
    ** Co to buy privately held Israel-based co RDD Pharma Ltd
in exchange for newly issued shares representing about 19.5% of
voting power and shares of convertible preferred stock 
    ** Deal, expected to close this year, will help INNT focus
on treating gastrointestinal diseases like celiac disease
    ** INNT stockholders will own up to about 58.5% of combined
co and RDD stockholders will own at least 41.5% 
    ** Combined co to be renamed 9 Meters Biopharma Inc and to
continue to trade on Nasdaq (http://bit.ly/2LSDrwf)
    ** Deal will position combined co to recognize "multiple
value inflection points" over the next 24 months, companies say
    ** Up to Friday's close, stock had fallen ~55.8% YTD

 (Reporting by Tamara Mathias in Bengaluru)
 ((Tamara.Mathias@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 1208;))