Published on 17 Jul 2023 on Zacks via Yahoo Finance

Frequency (FREQ) Up 77% on Merger Deal With Korro Bio

Shares of Frequency Therapeutics FREQ surged 77.48% on Friday, after management announced that the company entered into a definitive agreement with RNA editing company, Korro Bio, to merge in an all-stock transaction.

Per the terms of the agreement, pre-merger FREQ shareholders will own approximately 8% of the combined entity while the remaining 92% stake will be owned by pre-merger Korro Bio shareholders. Prior to the merger, Korro Bio has secured commitments from a syndicate of investors for a planned concurrent $117 million financing.

In addition, pre-merger FREQ shareholders will also be eligible to receive a contingent value right for each outstanding share, provided that the company has not monetized its remyelination program for Multiple Sclerosis (MS) prior to the closing of the merger.