By Colin Kellaher
ARCA biopharma shares more than doubled and hit a new 52-week high in early trading Wednesday after the clinical-stage biopharmaceutical company said it has agreed to a reverse merger with privately held biotechnology company Oruka Therapeutics.
Shares of the Westminster, Colo., company were recently changing hands at $3.63, up 112%, after touching a 52-week high of $3.82 early in the session.
ARCA said its current shareholders will own around 2.38% of the combined company, which will focus on Oruka's portfolio of biologics targeting chronic skin diseases.
The company also plans to pay a dividend of roughly $20 million to shareholders immediately prior to the deal closing, which would equal around $1.38 a share based on ARCA's 14.5 million shares outstanding as of Jan. 31.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
April 03, 2024 10:35 ET (14:35 GMT)
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