Here’s why Cellect Biotechnology shares are up 50% on Monday
- Cellect shareholders approved the merger agreement with Quoin Pharmaceuticals.
- The biotech firm's subsidiary, Cellect Biotherapeutics, will be acquired by EncellX Inc.
- Shares of the Israel-headquartered company are up 50% on Monday morning.
Cellect Biotechnology Ltd (NASDAQ: APOP) shareholders approved the previously announced strategic merger agreement with Quoin Pharmaceuticals, the company said in a press release on Monday.
Shares of the Israel-headquartered firm jumped about 50% this morning. The stock has now more than tripled this year.
The deal is likely to close in October 2021
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Roughly 99% of Cellect shareholders voted in favour of the strategic merger with Quoin at the Special General Meeting on September 26th. Quoin Pharmaceuticals is a privately-held company that focuses on rare and orphan diseases.
The agreement between the two companies is subject to customary closing conditions, meeting which, the transaction is likely to complete in October 2021. Once the two companies are merged, Cellect will be listed on the Nasdaq Capital Market as Quoin Pharmaceuticals Ltd under the symbol “QNRX”.
EncellX to buy Cellect Biotherapeutics Ltd
Cellect Shareholders also approved the proposal from EnCellX Inc to buy Cellect Biotherapeutics Ltd (subsidiary).
The announcements come shortly after the Nasdaq Stock Market LLC notified Cellect Biotechnology that it no longer meets the requirements to stay listed on the stock exchange. The notice read:
The Company does not meet the requirement to maintain a minimum stockholders’ equity of $2,500,000. It also doesn’t meet the Listing Rule’s alternatives for continued listing based on market value of listed securities or net income from continuing operations.
Cellect is expected to disclose its plan to “regain compliance” with Nasdaq Listing Rule by 5th November.