GlycoMimetics, Inc. (NASDAQ:GLYC) shares are moving higher on Tuesday after the company announced it will merge with Crescent Biopharma. The company also said it secured $200 million in funding to advance its oncology pipeline.
What To Know: GlycoMimetics has entered into an acquisition agreement with privately held biotech firm Crescent BioPharma. The combined company, which will operate under the name Crescent Biopharma, Inc., will focus on advancing Crescent Biopharma's current solid tumor portfolio, including its lead therapies CR-001, CR-002 and CR-003.
In support of the merger, a group of investors has agreed to purchase $200 million in the combined company's common stock and pre-funded warrants. The purpose of the funding is to support operations through 2027, including further developing lead therapeutic treatments.
The merger transaction is anticipated to close in the second quarter of 2025, with the financing transaction expected to close immediately afterward.
Under the acquisition agreement, pre-acquisition GlycoMimetics stockholders will hold about 3.1% of the combined company, while pre-acquisition Crescent stockholders, including those involved in pre-closing financing, will own roughly 96.9%.
"We are confident that our transaction with Crescent represents a significant opportunity for GlycoMimetics and its stockholders," said Harout Semerjian, CEO of GlycoMimetics.
"This transaction is the result of a comprehensive strategic review, and with additional funding for Crescent's portfolio of novel biologics, we believe the company is well-positioned to carry forward the mission of seeking to improve the lives of patients."
GlycoMimetics stock is trading on above-average volume Tuesday. The company's average session volume over the past 100 days is 1.05 million, but Tuesday's trading volume was around 856 million at the time of publication.
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GLYC Price Action: At the time of publication, GlycoMimetics shares are up 210.1% at 52 cents, according to data from Benzinga Pro.
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