Core Viewpoint - Akari Therapeutics has entered into a definitive merger agreement with Peak Bio, expected to close in the third quarter of 2024, with a focus on advancing their respective therapeutic technologies and restructuring to reduce operating costs [1][3][7]. Company Highlights - The merger with Peak Bio will be an all-stock transaction, resulting in a combined entity operating as Akari Therapeutics, Plc, continuing to trade on Nasdaq as AKTX [3][7]. - The leadership has changed with Samir R. Patel, M.D. appointed as interim CEO following the departure of Rachelle Jacques [3]. - A significant reduction in workforce of approximately 67% has been initiated as part of an operational restructuring plan to lower costs [3]. - Existing investors have supported the company with the issuance of $1 million in unsecured convertible notes [1]. Financial Results - As of March 31, 2024, the company reported cash of approximately $1.3 million [4][18]. - Research and development expenses increased to approximately $2.3 million for Q1 2024, compared to $1.7 million in Q1 2023 [4][17]. - General and administrative expenses rose to approximately $3.7 million for Q1 2024, up from $2.9 million in Q1 2023 [4][17]. - The net loss for Q1 2024 was approximately $5.6 million, a significant decline from a net income of approximately $1.0 million in Q1 2023 [5][6][17]. - The weighted-average number of ordinary shares used in computing net loss per share was approximately 13.45 billion for Q1 2024, compared to 7.47 billion for Q1 2023 [17]. Merger Details - The merger agreement stipulates that Peak stockholders will receive Akari shares based on an exchange ratio, leading to an implied equity ownership of approximately 50% for both Akari and Peak stockholders [7]. - The transaction is subject to customary closing conditions, including shareholder approval from both companies [7].
Akari Therapeutics Reports First Quarter 2024 Financial Results and Recent Highlights