NLS Pharmaceuticals Ltd. (NASDAQ:NLSP) stock is moving higher on Monday after the company announced it filed a F-4 registration statement with the Securities and Exchange Commission ahead of a proposed merger.

The Details: The filing of the F-4 registration statement marks a major step in the completion of the proposed merger which will create a Nasdaq-traded, biotechnology company with product candidates in advanced stages of clinical development and a focus on advancing its allogeneic cell therapy platform.

The parties plan to continue developing NLS's first-in-class Dual Orexin Agonist platform. However, the remaining NLS assets are expected to be divested in accordance with a contingent value rights agreement and the proceeds will be distributed to current shareholders of NLS.

Through the merger, Kadimastem will become a wholly owned subsidiary of NLS. In consideration, NLS will issue common stock to Kadimastem shareholders. Kadimastem shareholders will hold about 85% of outstanding stock and NLS shareholders will hold the remaining 15%.

The merger has been approved by the board of directors of both companies and a binding merger agreement has been signed. Kadimastem and NLS have received commitments of support with respect to voting for matters related to the merger from shareholders representing more than 40% of its outstanding shares.

Alex Zwyer, CEO of NLS, stated, "We are excited about the momentum building around the merger. We believe that this strategic partnership is set to strengthen our market position and enhance shareholder value through expanded growth opportunities. We are focused on executing the merger effectively, as we move forward together in the biotechnology sector."

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NLSP Price Action: At the time of writing, NLS stock is trading 36.7% higher at $2.49, according to data from Benzinga Pro.

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