SAN DIEGO - Kintara Therapeutics, Inc. (NASDAQ:KTRA), a biopharmaceutical company specializing in the development of new cancer therapies, is calling on its stockholders to vote on a proposed merger with TuHURA Biosciences, Inc. The vote is crucial for completing the all-stock transaction aimed at creating a combined entity to advance a diversified late-stage oncology pipeline.
The Special Meeting of Stockholders, where the vote will take place, is scheduled for Friday, September 20, 2024, and will be conducted virtually via audio webcast. Stockholders must register by September 19, 2024, to participate in the meeting.
Subject to stockholder approval, Kintara equityholders will own approximately 2.85% of the common stock of the post-merger company, which may increase to about 5.45% considering contingent value rights. Conversely, TuHURA equityholders are expected to hold roughly 97.15% of the common stock, decreasing to 94.55% post-issuance of CVR shares. The post-merger company will operate under the name TuHURA Biosciences, Inc. and is expected to continue trading on the Nasdaq Capital Market under the ticker "HURA."
The merger is contingent on customary closing conditions, including the approval of stockholders from both companies. If successful, the merger is anticipated to be finalized in the third quarter of 2024.
Kintara also highlights that stockholders as of August 14, 2024, are entitled to vote. The company has outlined several methods for stockholders to cast their votes, including by phone through Alliance Advisors, via the internet at www.proxyvote.com, or for Robinhood (NASDAQ:HOOD) users, directly through emails from Say Technologies. Kintara has stated its willingness to adjourn or postpone the Special Meeting if necessary to allow additional time for voting.
TuHURA Biosciences, the potential merger partner, is a Phase 3 registration-stage immuno-oncology company developing novel technologies to counteract resistance to cancer immunotherapy. Its lead vaccine candidate, IFx-2.0, is being prepared for a Phase 3 trial in advanced or metastatic Merkel Cell Carcinoma.
This merger news is based on a press release statement and further information can be found in the definitive proxy statement and final prospectus filed by Kintara with the Securities and Exchange Commission on August 19, 2024.
In other recent news, Kintara Therapeutics has announced a merger with TuHURA Biosciences, a move that is expected to enhance their abilities to develop innovative cancer treatments. This merger, which is a part of Kintara's ongoing efforts to finalize its merger with TuHURA, is subject to stockholder approval and other closing conditions. In addition, Kintara has withdrawn its designation of two types of preferred stock, namely the Special Voting Preferred Stock and the Series B Preferred Stock, a move that could simplify its capital structure.
TuHURA Biosciences has secured exclusive rights to an advanced immunotherapy asset, KVA12123, currently in clinical trials. This acquisition is supported by a $5 million investment from an existing shareholder. TuHURA has also reported positive results from a Phase 1b trial of its leading cancer vaccine candidate, IFx-2.0, conducted with Kintara Therapeutics.
Kintara Therapeutics recently held its Annual Meeting of Stockholders where four directors were elected, the compensation of the company's named executive officers was approved, and the appointment of Marcum LLP as Kintara's independent registered public accounting firm for the fiscal year ending June 30, 2024, was ratified. These are the recent developments for both Kintara Therapeutics and TuHURA Biosciences.
InvestingPro Insights
As Kintara Therapeutics, Inc. (NASDAQ:KTRA) prepares for its pivotal stockholder vote on the merger with TuHURA Biosciences, Inc., InvestingPro data reveals a nuanced financial landscape for the biopharmaceutical company. Kintara's market capitalization stands at a modest $9.62 million. Despite a challenging year, the company's stock has seen a significant rebound with a six-month price total return of 94.08%, signaling a potential shift in investor sentiment as Kintara approaches the merger date.
InvestingPro Tips further illuminate the company's financial health and strategic considerations. Kintara holds more cash than debt, which is a positive sign for its balance sheet resilience (InvestingPro Tip #0). However, the company is quickly burning through its cash reserves, which may raise concerns about its long-term financial sustainability (InvestingPro Tip #1). Additionally, Kintara's valuation implies a poor free cash flow yield, which could impact the attractiveness of the stock to potential investors (InvestingPro Tip #4).
For those interested in a deeper analysis of Kintara Therapeutics, there are additional InvestingPro Tips available, which provide a comprehensive view of the company's financial status and market performance. These insights can be particularly valuable for stockholders as they consider their vote on the upcoming merger.
The InvestingPro platform lists a total of 12 tips for Kintara Therapeutics, Inc., offering a thorough examination of the company's financial metrics and market position. Stockholders and potential investors may find these tips useful for making informed decisions in the context of the proposed merger and beyond.
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