Leap Therapeutics falls on acquiring private biotech Flame Biosciences

Cypherpunk Technologies

17/01/2023 19:11

(Updates)
    ** Shares of cancer drug developer Leap Therapeutics Inc
 LPTX.O  fall 17.2% to 48 cents - set for biggest one-day pct
loss since November
    ** Co says it has acquired private biotech firm Flame
Biosciences Inc in an all-stock transaction 
    ** Deal to gain access to Flame's experimental gastric
cancer therapies - LPTX
    ** LPTX says it will issue about 19.8 mln shares of its
common stock and about 136,833 shares of a newly designated
series of preferred stock to Flame stockholders
    ** Each share of newly designated preferred stock will be
automatically converted into 1,000 shares of common stock upon
approval - LPTX
    ** Adds that LPTX will pay Flame shareholders 80% of the
after-tax proceeds of certain post-merger transactions, if any,
to out-license or sell its antibody-based drugs, FL-101 or
FL-103
    ** LPTX shares fell ~79.4% in the past 12 months
 (Reporting by Mariam E Sunny)
 ((Mariam.ESunny@thomsonreuters.com;))