** Shares of ARCA Biopharma jump ~87% to $3.2 premarket

** Company to merge with private biotech Oruka Therapeutics in all-stock deal

** Oruka has secured $275 mln stock and warrant funding to support the deal from a group of healthcare investors led by Fairmount and Venrock Healthcare Capital Partners

** Newly formed combined company will operate as Oruka Therapeutics and trade on Nasdaq under the ticker symbol "ORKA"

** Cash balance at deal closing is expected to fund Oruka's operations through 2027

** Cash balance to support development of Oruka's experimental drug candidates, ORKA-001 and ORKA-002, as potential treatments for chronic skin diseases

** ABIO shareholders will own about 2.4% of the combined company, while Oruka stockholders and investors will own the rest

** As of last close, ABIO up ~1% YTD

(Reporting by Bhanvi Satija in Bengaluru)

((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))