Aethlon Medical Inc. (NASDAQ:AEMD) stock on Thursday skyrocketed after the company signed an all-stock merger agreement with privately held biotech firm North Immunology Inc.
The merger will create a combined company that will trade on the Nasdaq Capital Market under the ticker symbol NRTX.
Backed by $180 million in gross proceeds from a concurrent private placement, the transaction positions the combined entity to advance North Immunology’s pipeline, particularly its lead drug candidate NOR-101 targeting inflammatory and immune diseases.
Deal Structure And Stockholder Equity
Under the terms of the agreement, pre-merger Aethlon stockholders will hold approximately 4.75% of the combined business, while North Immunology shareholders will own roughly 95.25%.
The combined entity holds a pro forma equity valuation of approximately $346.5 million.
Furthermore, legacy Aethlon shareholders will receive contingent value rights entitling them to net proceeds from any future sale, license, or monetization of Aethlon’s legacy Hemopurifier business.
Hemopurifier is a clinical-stage immunotherapeutic device designed for the depletion of cancer-promoting exosomes and viruses from the circulatory system, and for use in organ transplantation.
Pipeline Timeline And Financial Backing
A healthcare investor syndicate provided $180 million in private placement funding, which includes converting roughly $34 million in promissory notes.
Management expects these funds to support operations into the second half of 2028.
North Immunology plans to initiate a Phase 1a trial for NOR-101 in early 2027, followed by Phase 1b and 2b trials in atopic dermatitis later that year, aiming to report topline data in 2028.
Governance And Closing Expectations
The combined organization will operate under the North Immunology name and leadership team.
Daniel Schneeberger, co-founder of North Immunology and managing partner at ADAR1 Capital Management, will chair the board alongside new independent directors.
Both boards approved the merger, which remains subject to shareholder approval, SEC registration, and Nasdaq listing clearance prior to an expected close in the first quarter of 2027.
AEMD Price Action: Aethlon Medical shares were up 397.20% to $7.11 during premarket trading on Thursday, according to Benzinga Pro data.
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