Brooklyn ImmunoTherapeutics Stock Rises After Novellus Therapeutics Buyout Deal

Brooklyn ImmunoTherapeutics LLC BTX has executed a non-binding letter of intent to acquire Novellus Therapeutics, a company developing engineered mesenchymal stem cell (MSC) therapies using mRNA cell reprogramming and gene editing technologies licensed from Factor Bioscience.
Under the terms of the LOI, the parties intend to sign a definitive agreement and work to close the acquisition by July 15.
The terms of the LOI value Novellus at $125 million, which is proposed to be paid by Brooklyn with $17.4 million in cash and $107.6 million in BTX common stock.
Brooklyn currently has over $43 million of cash on its balance sheet to fund the cash component of the Transaction.
"If the acquisition of Novellus is transacted, Brooklyn would achieve both strategic and economic benefits. This acquisition would further advance Brooklyn's evolution into a platform company with a pipeline of next-generation gene and cell therapy programs," said Brooklyn's CEO and President Howard J Federoff.
The acquisition of Novellus builds on the license agreement that Brooklyn executed earlier this year with Factor and Novellus.
The Transaction would relieve Brooklyn from the obligation to pay Novellus a set of upfront fees, clinical development milestone fees, and post-registration royalties.
Price Action: BTX shares are up 8.04% at $15.45 during the market session on the last check Monday.