Cizzle Biotechnology plc (LON:CIZ), the UK-based diagnostics developer, notes the announcement by Conduit Pharmaceuticals Limited that they intend to become a publicly traded company on NASDAQ in the USA via a merger with Murphy Cannon Acquisition Corp., a NASDAQ listed special purpose acquisition company.
Cizzle Biotechnology announced on 29 February 2022 that it has entered into a definitive agreement with Conduit and St George Street Capital Limited to acquire a further 5% economic interest in the commercialisation of the AZD 1656 asset or other such assets being developed by Conduit or SGSC to treat inflammatory pulmonary and cardiovascular disease, for a total consideration of £1.88m, which was paid through the issue of new ordinary shares in the Company at 4.0 pence per share. It has been reported that AZD 1656 acts as an immunomodulator to dampen inflammatory response which could have wider applications in managing serious cardiovascular and lung diseases.
Conduit has entered into a definitive business combination agreement with Murphy. The business combination transaction is expected to provide Conduit with access to the public equity market, which the parties believe will accelerate development of Conduit’s pipeline. Upon the business combination transaction closing, which is expected to occur in the first quarter of 2023, the combined company is expected to be named Conduit Pharmaceuticals Inc., which will continue to operate under the Conduit management team.
Conduit state that the combined company is anticipated to have an estimated pro forma enterprise valuation of approximately US$700 million. Cash proceeds from the transactions contemplated by the business combination agreement are expected to consist of up to approximately US$136 million of cash held in Murphy’s trust account (before any redemptions by Murphy’s public stockholders) and approximately US$27 million (before expenses) attributable to a private investment anchored by new and existing investors of Conduit
The transaction proceeds will advance the clinical evaluation of specific activation of Tregs in one of a number of possible autoimmune diseases. The transaction, which has been unanimously approved by the boards of directors of both Conduit and Murphy, are subject to, among other customary closing conditions, approval by the stockholders of Murphy, and the shareholders of Conduit.
Commenting, Allan Syms, Executive Chairman of Cizzle Biotechnology, said:
“I am delighted to see Conduit announce this proposed listing, which will provide them with funding to aid the development of AZD 1656 and other potential assets being developed to treat inflammatory pulmonary and cardiovascular disease, in which Cizzle Biotechnology has an economic interest through its royalty rights, amongst the other assets in their portfolio.”
