Core Viewpoint - ARCA biopharma has entered into a merger agreement with Oruka Therapeutics, which is part of a strategic review process aimed at exploring various alternatives for the company's future operations [2][3]. Merger Agreement - The merger involves two steps: the first merger where Atlas Merger Sub I will merge with Oruka, and the second merger where the surviving corporation will merge with Atlas Merger Sub II, both resulting in Oruka becoming a wholly owned subsidiary of ARCA [2]. - The merger is intended to qualify as a tax-free reorganization under Section 368(a) of the Internal Revenue Code [2]. Leadership Changes - Dr. Michael Bristow has mutually agreed to conclude his role as President and CEO effective April 3, 2024, and will receive a severance package totaling twelve months of his base salary and an additional cash payment of $25,000 [4][5]. - Thomas A. Keuer has been appointed as President and principal executive officer, effective April 3, 2024, while continuing his role as Chief Operating Officer [6][7]. Financial Results - As of March 31, 2024, ARCA reported cash and cash equivalents of $35.9 million, a decrease from $37.4 million as of December 31, 2023, and believes this will fund operations through mid-2025 [8]. - General and administrative expenses increased to $2.3 million in Q1 2024 from $1.4 million in Q1 2023, primarily due to a rise in professional fees related to the merger [9]. - Research and development expenses decreased to $0.2 million in Q1 2024 from $0.4 million in Q1 2023, attributed to reduced headcount and the conclusion of certain research grants [10]. - Total operating expenses for Q1 2024 were $2.5 million, compared to $1.8 million in Q1 2023, with a net loss of $2.0 million or $0.14 per share, compared to a net loss of $1.3 million or $0.09 per share in the prior year [11].
ARCA biopharma Announces First Quarter 2024 Financial Results and Provides Corporate Update