Flex Pharma (FLKS) Stock: Climbing On Merger News

Flex Pharma FLKS Stock News

Flex Pharma Inc (NASDAQ: FLKS) is having a great start to the trading session this morning, and for good reason. The company announced that it has entered into a definitive merger agreement, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:

  • The merger agreement news;
  • what we’re seeing from FLKS stock as a result; and
  • what we’ll be watching for ahead.

FLKS Announces Merger Agreement 

As mentioned above, Flex Pharma is having a great start to the trading session this morning after announcing a merger agreement. In a press release issued early this morning, the company announced that it has entered into a definitive merger agreement with Salarius Pharmaceuticals.

Under the terms of the merger agreement, Salarius will merger with a wholly-owned subsidiary of FLKS. The company sees the proposed merger as a highly accretive transaction as Salarius has a strong clinical pipeline targeting rare, orphan cancers with no targeted treatments and cancers that have high unmet need.

Upon the closinf of the transaction, FLKS shareholders will owne 19.9% of the combined company with Salarius investors owning about 80.1%. Also, shareholders of Flex Pharma will also receive a right to receive warrants, six months and one day following the close of the transaction. This will allow shareholders to purchase additional shares.

Once the transaction comes to a close, FLKS will be renamed to Salarius Pharmaceuticals, Inc. and be under the leadership of the Slarius management team. This team is led by CEO, David Arthur. The transaction will also end with the Salarius pipeline becoming the lead assets of the company.

In a statement, William McVicar, Ph.D., President and CEO at FLKS, had the following to offer:

After completing a comprehensive and highly competitive selection process, we are confident that the proposed transaction with Salarius offers the best opportunity for significant near- and long-term value creation. We were impressed by the compelling science supporting Salarius’ novel drug, as well as the company’s strong financial position and management team. Based on our diligence, we believe Salarius could be poised to advance multiple potential product opportunities that address significant unmet needs in oncology. I look forward to supporting the company and being a member of the Salarius Board of Directors following the closing of the transaction. Finally, I would like to thank our stockholders for their support and patience during this strategic process and to reiterate that the entire team is fully committed to enhancing stockholder value with this transaction and beyond.

The above statement was followed up by Mr. Arthur. Here’s what he had to say:

This strategic transaction and Nasdaq listing represent a growth opportunity for both companies. As an emerging public company, we believe that the enhanced visibility and exposure to institutional investors will enable Salarius to showcase the potential of its clinical pipeline, and the progression of its programs should drive increased stockholder value. Our goal is to become a recognized leader in epigenetic cancer therapy.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Flex Pharma, the news proved to be overwhelmingly positive. After all, this merger will add immediate value for shareholders. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:52), FLKS is trading at $0.66 per share after a gain of $0.28 per share or 71.88% thus far today.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

What We’ll Be Watching For Ahead

Moving forward, the iWatch Markets team will continue to keep a close eye on FLKS. In particular, we’re interested in following the story surrounding the merger. While the agreement is a definitive one, the closing of the transaction is still subject to customary closing conditions and regulatory approval. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the iWatch Markets mailing list below!

Subscribe Today!

* indicates required


Please enter your comment!
Please enter your name here