Vincerx Pharma To Merge With Oqory; Cuts Jobs

Vincera Pharma

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(RTTNews) - Vincerx Pharma Inc. (VINC) announced that it has reached a binding term sheet for a proposed merger with Oqory Inc., a privately-held, clinical-stage company developing ADCs for the treatment of multiple oncology indications.

VINC closed Friday's regular trading at $0.1940 up $0.0101 or 5.49%. In the after-hours trading, the stock further gained $0.13 or 66.91%.

Upon completion of the proposed merger, Oqory will merge with Vincerx Pharma, Inc. Post-closing, Oqory equity holders are expected to own approximately 95% of the combined entity, while Vincerx equity holders will hold about 5%. The transaction includes a minimum fully diluted equity value of $13.66 million for existing Vincerx stockholders at closing and, as a condition to the closing of the merger, completion of a concurrent offering of Vincerx equity securities of at least $20 million.

Additionally, Oqory-designated investors will provide interim financing to Vincerx of $1.5 million in two tranches, approximately $1 million of which was funded today through the issuance of common stock and pre-funded warrants along with accompanying common stock warrants and approximately $500,000 of which will be funded on or prior to January 31, 2025.

The merger is subject to customary closing conditions, including due diligence, regulatory approvals, negotiation of a definitive merger agreement, stockholder approval from both parties, completion of the minimum $20 million financing, and the continued listing of Vincerx's common stock on Nasdaq.

In addition, Vincerx said it implementing additional streamlining and cost-control measures, including a workforce reduction, as it pursues due diligence and transaction-related work.

As part of the workforce reduction, Ahmed Hamdy, Chairman and Chief Executive Officer, has stepped down as Chief Executive Officer but will remain as Chairman. Raquel Izumi has stepped down as President and Chief Operations Officer and taken over as Acting Chief Executive Officer in a consulting capacity.

Alexander Seelenberger has stepped down as Chief Financial Officer, and Kevin Hass, the Company's Vice President and Controller, has taken over as Acting Chief Financial Officer. Seelenberger has agreed to provide ongoing assistance in a consulting capacity to assist the Company as it pursues its strategic efforts.