ARCA biopharma (ABIO) said late Friday that it will distribute a special dividend estimated to be $1.59 per share, subject to approval of the proposed merger with Oruka Therapeutics by ARCA shareholders.

The exact amount of the dividend will be based on the merger agreement and ARCA's estimate of how much its net cash exceeds $5 million before the merger closes, the company said.

The dividend is payable on Aug. 28 to shareholders of record on Aug. 26, the company said.

The proposed merger is expected to close on Aug. 29.

Shares of ARCA were up about 13% in recent after-hours activity.

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