Vincerx Pharma To Merge With Oqory; Cuts Jobs

Vincerx Pharma Inc. (VINC) has announced a binding term sheet for a proposed merger with Oqory Inc., a private clinical-stage company focused on developing antibody-drug conjugates (ADCs) for various oncology treatments.

VINC's stock closed Friday's regular session at $0.1940, marking an increase of $0.0101, or 5.49%. The stock further surged in after-hours trading, gaining $0.13, an increase of 66.91%.

Following the anticipated merger, Oqory will combine with Vincerx Pharma, Inc. In the resulting entity, stakeholders of Oqory are expected to hold approximately 95% of the equity, whereas Vincerx shareholders will own about 5%. The deal stipulates a minimum fully diluted equity value of $13.66 million for existing Vincerx stockholders upon completion, with a requirement for a concurrent offering of at least $20 million in Vincerx equity securities to finalize the merger.

Moreover, investors designated by Oqory will extend interim financing to Vincerx totaling $1.5 million, delivered in two segments. Around $1 million of this sum was funded today through the issuance of shares and pre-funded warrants, accompanied by common stock warrants, with the remaining $500,000 slated for funding on or before January 31, 2025.

The merger's finalization remains contingent upon customary conditions, such as due diligence, regulatory clearances, the negotiation of a detailed merger agreement, obtaining shareholder approval from both companies, completion of the necessary $20 million financing, and Vincerx’s common stock maintaining its listing on Nasdaq.

Furthermore, Vincerx has announced plans to implement additional efficiency and cost-control measures, which will include workforce reductions as due diligence and transaction efforts continue.

In line with these reductions, Ahmed Hamdy has resigned as Chief Executive Officer but will retain his role as Chairman. Raquel Izumi stepped down from her positions as President and Chief Operations Officer and will serve as Acting Chief Executive Officer on a consultancy basis.

Additionally, Alexander Seelenberger has resigned as Chief Financial Officer, with Kevin Hass, the Vice President and Controller, stepping in as Acting Chief Financial Officer. Seelenberger has agreed to continue offering support in a consultative role to assist the company with its strategic initiatives.

The material has been provided by InstaForex Company - www.instaforex.com
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