WESTPORT, Conn. - Portage Biotech Inc. (NASDAQ: PRTG), a clinical-stage immuno-oncology company trading near $3.25, announced today that it has signed a Letter of Intent (LOI) with Immunova, LLC, a private biotech firm specializing in lipid-based drugs and immune therapies. According to InvestingPro data, the company's stock has experienced significant volatility, currently trading 92% below its 52-week high of $40.80. The LOI outlines the intention to negotiate a definitive option agreement for Immunova to potentially acquire iOx Therapeutics, Ltd, a wholly owned subsidiary of Portage.
iOx is engaged in the development of liposomal iNKT agonists, with its lead candidate, PORT-2, showing promising initial clinical activity. The acquisition would mark a significant step for Immunova, as it seeks to bolster its portfolio with iOx's assets, which could enhance its clinical-stage offerings in lipid drugs and delivery systems. Notably, Portage maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 3.08x.
Portage's CEO, Alex Pickett, expressed enthusiasm for the partnership, emphasizing the company's strategy to maximize asset value and deliver shareholder returns. Simultaneously, Brian Horsburgh, CEO of Immunova, highlighted the acquisition's alignment with their mission to advance innovative therapies to patients in need.
The completion of this transaction is contingent upon the negotiation and execution of definitive agreements, as well as meeting customary closing conditions and regulatory approvals. Both companies have committed to advancing the transaction expeditiously and plan to provide updates as necessary.
This development is part of Portage Biotech's broader business strategy to develop a pipeline of novel biologics aimed at transforming the immune system's ability to combat cancer. The company's approach is grounded in identifying and advancing therapies with unique mechanisms of action that address unmet patient needs. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available through their premium subscription. InvestingPro subscribers have access to 14 more exclusive tips about PRTG's financial health and market position.
Investors are cautioned that this announcement includes forward-looking statements, such as the potential benefits of PORT-2, the anticipated definitive agreement, and the expected value of iOx's assets. These statements are subject to risks and uncertainties, and actual results may differ materially. Portage Biotech has indicated that it does not intend to update forward-looking statements except as required by law.
The information in this article is based on a press release statement from Portage Biotech Inc.
In other recent news, Portage Biotech Inc. has received a non-compliance notice from The Nasdaq Stock Market, indicating that the company does not meet the minimum shareholders' equity requirement for continued listing. The company's shareholders' equity was reported at $695,000 as of September 30, 2024, falling short of the required $2.5 million threshold. Despite this, Portage Biotech maintains a current ratio of 3.08, indicating sufficient liquid assets to meet short-term obligations.
The company has been given a 45-day period to submit a plan to regain compliance or meet an alternative listing standard. If Nasdaq accepts this plan, Portage Biotech may be granted up to 180 days from the notice date to demonstrate compliance. However, if the plan is not accepted, the company may face delisting, but will have the opportunity to appeal any delisting determination to a Nasdaq hearings panel.
Amid these developments, Portage Biotech has decided to discontinue its sponsored trial for its invariant natural killer T-cell program and pause further patient accrival to its adenosine trial program. The company is exploring strategic alternatives, which could include partnering, a sale, a merger, restructurings, a wind down, further financing efforts, or other strategic actions. Despite the challenges, Portage Biotech holds more cash than debt on its balance sheet, which may influence the potential outcomes of these strategic alternatives.
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