Apexigen (NASDAQ: APGN), which recently combined with Brookline Capital in July 2022, announced that it will be acquired by Pyxis Oncology (NASDAQ:PYXS) in an all-stock transaction that would value it at $0.64 per share.

For each share of Apexigen, Pyxis Oncology will issue 0.1725 shares of its common stock for a total enterprise value of approximately $16 million.

Under the terms of the agreement, Pyxis Oncology expects to issue approximately 4.4 million shares of its common stock to Apexigen stockholders to acquire the company. Current stockholders of Pyxis Oncology will own approximately 90% of the combined company and Apexigen’s stockholders are expected to own 10%.

Pyxis Oncology last closed at $3.34 and so the price represents a 10.4% premium over Apexigen’s last closing price of $0.58.

Apexigen and Brookline Capital originally intended to raise $73 million through the merger, but were only able to generate $19 million in gross proceeds. After just six months of being a public company, Apexigen announced that it was evaluating strategic alternatives and implementing a corporate restructuring to extend its cash runway, which resulted in laying off 55% of its team.

With a shared vision of bringing innovative solutions to oncology patients, Pyxis expects to complete the all-stock transaction with Apexigen by mid-2023. Upon closing of the transaction, the combined company will trade on Nasdaq under the ticker symbol “PYXS” and the existing Pyxis Oncology leadership team will continue to be responsible for all executive positions.

Pyxis Oncology, Inc. is a clinical-stage company focused on defeating difficult-to-treat cancers and is building next-generation therapeutics that hold the potential for mono and combination therapies.