Heya
Here is some DD for you.
July 8 - Scipher Medicine, American private precision medicine and AI company, and
Chemomab, Israeli clinical stage biotech company, announced merger definitive agreement between the two.
They will combine to become one company, Scipher Medicine, and will relist on Nasdaq under a different ticker than "$CMMB" which Chemomab lists as today. And the company will become a US company.
Here comes the juicy part:
The combined value of the company will be $150M. Chemomab will get 32% of that, aka $48M.
Today Chemomab`s shares is trading at $14M. Thats 3.4x of todays value.
What makes this even more interesting, and is an important piece of the puzzle: Chemomab legacy shareholders, those who own $CMMB shares, will get CVRs. Contigent Value Rights.
These should be undisclosed right now, but from one of the latest filings, their biggest shareholder, gave out the juicy details:
$5 per ADS (shares you own) if Chemomab, or Scipher Medicine when merged, begin Phase 3 trial of PSC. How close are we to getting there you wonder? Is there even a chance of this bonus?
Well Chemomab have repeatedly said they are negotiating with third party now to fund and begin the trial. They said it in the quarterly and they said it in the merger announcement.
What makes this even more interesting is that Phase 3 have been given the all clear from FDA, and that the company have recieved FDA Fast Track for nebokitug against PSC, which is highly lucrative for anyone who wish to fund Chemomab.
The company may even be negotiating with big pharma right now, since the company is dirt cheap, have shown that a bigger company wants them and their nebokitus drug, and they have been given a valuation of $48M, which could trigger bidding war to aquire them. Outright aquire them will be cheaper for a big pharma than running the Phase 3, which they have been negotiating on for a while now.
**So to summarize:**
Merger in Q4 this year.
Trading at $1.93
Valuation after merger, $5+
Near term milestone payment to shareholders that own $CMMB BEFORE merger: $5
High aquistion target by Big Pharma