TuHura Biosciences (HURA) said Thursday it agreed to acquire Kineta, including the rights to Kineta's KVA12123 checkpoint inhibitor, in a cash-and-stock transaction.

Kineta shareholders will receive up to about 3.48 million shares of TuHura stock, subject to a six-month holdback of 869,142 shares for additional liabilities, as well as $9 million in cash less Kineta's working capital deficit at closing and any working capital loans extended by TuHura after the deal was signed, TuHura said.

Kineta may also earn payments from potential sale of non-KVA12123 products and technologies prior to the closing of the proposed merger, TuHura added.

Meanwhile, TuHura will fund up to $900,000 in KVA12123 clinical trial expenses and may extend $2 million in working capital loans under a clinical trial funding agreement with Kineta, TuHura said, adding $1.75 million of the potential working capital loans will depend on the completion of a financing transaction.

The deal is expected to close in Q1 2025, subject to stockholder approvals and other conditions, TuHura said.