Leap Therapeutics Shares Fall After Flame Biosciences Acquisition

• Leap Therapeutics Inc (NASDAQ: LPTX) has agreed to acquire Flame Biosciences Inc, a privately-held biotechnology company, in an all-stock transaction.

• The deal adds Flame's assets, including FL-301, its clinical stage anti-Claudin18.2 monoclonal antibody; FL-302, its preclinical anti-Claudin18.2/CD137 bispecific monoclonal antibody; and FL-501, its preclinical anti-GDF15 monoclonal antibody.

• Flame ended the December quarter with net cash of approximately $50 million.

• Leap Therapeutics' total cash balance of the combined company as of December 31, 2022, was approximately $115 million, expected to be sufficient to fund Leap's planned operating expenses and development plans to mid-2025.

• Leap will issue approximately 19.8 million shares and approximately 136,833 shares of a newly designated Series X non-voting convertible preferred stock to Flame stockholders.

• In addition, Leap will pay the Flame shareholders 80% of the after-tax net proceeds, if any, from certain post-merger transactions to out-license or sell FL-101 or FL-103, Flame's anti-IL-1b antibodies.

• Leap has added two members nominated by Flame to its existing eight-person Board of Directors.

• Price Action: LPTX shares are down 2.18% at $0.57 during the premarket session on the last check Tuesday.

• Photo Via Company

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