MODI'IN, Israel and NEW YORK - Moringa Acquisition Corp (NASDAQ:MACA), a special purpose acquisition company, announced today it has reached an agreement to merge with Silexion Ltd., an oncology-focused biotechnology firm. The deal, unanimously approved by both companies' boards, is set to finalize in the third quarter of 2024, subject to customary closing conditions and approvals from shareholders and Nasdaq.
The merger values Silexion's pre-transaction equity at $62.5 million, with a share price of $10. Post-merger, Silexion is expected to become a publicly traded company on the Nasdaq. Moringa will issue approximately 6.25 million shares to Silexion’s current equity holders.
Silexion, based in Israel, has recently reported positive results from its Phase 2a clinical trial for Loder™, a product targeting non-resectable pancreatic cancer with specific KRAS mutations. The trial demonstrated a median overall survival advantage of 9.3 months when Loder was used with chemotherapy, compared to chemotherapy alone. Following these results, Silexion is developing a second-generation product, SIL-204B, to potentially enhance efficacy.
Ilan Levin, CEO and Chairman of Moringa, expressed optimism about the merger, highlighting Silexion's innovative approach in RNA therapeutics and the potential benefits for shareholders of both entities.
Legal counsel for the transaction includes Meitar | Law Offices and Greenberg Traurig for Moringa, and Herzog Fox & Neeman for Silexion. Further details of the business combination will be disclosed in forthcoming Current Reports on Form 8-K by Moringa.
This announcement is based on a press release statement from the companies involved.
InvestingPro Insights
As Moringa Acquisition Corp (NASDAQ:MACA) gears up for its merger with Silexion Ltd., investors are closely monitoring the financial metrics that could influence the post-merger performance. According to real-time data from InvestingPro, Moringa Acquisition Corp is currently trading with a high earnings multiple, as reflected by its P/E Ratio (Adjusted) of 40.86 for the last twelve months as of Q3 2023. This suggests that investors have high expectations for the company's future earnings growth.
Despite the high earnings multiple, an InvestingPro Tip points out that the company's stock generally trades with low price volatility, which could be a sign of market confidence in the stability of Moringa's share price. Additionally, Moringa's liquid assets exceed its short-term obligations, indicating a solid financial position for the immediate future.
The InvestingPro Fair Value estimate for MACA stands at 10.13 USD, which is slightly below the previous close price of 11.05 USD, hinting at the stock's current market assessment. For investors seeking additional insights, there are more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/MACA. Utilize coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock the full suite of tips to inform your investment strategy.
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