Carisma Therapeutics (CARM) stock surged on Tuesday after the biopharmaceutical company provided an update on its merger agreement with Ocugen (OCGN). The company will merge with Ocugen subsidiary OrthoCellix, which will be the surviving company after the merger.
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The latest update includes an agreement with investors designated by OrthoCellix to purchase shares of the company’s common stock after the merger. This will generate gross proceeds of up to $25 million. It also comes alongside a subscription agreement from Ocugen for the combined company’s shares, with gross proceeds set at $5 million.
Carisma Therapeutics also revealed that President and CEO Steven Kelly will continue to lead the company after its merger with OrthoCellix. Kelly will also be granted stock options worth 4% of diluted capitalization, as well as retention and transaction bonuses. These won’t go into effect unless the deal with OrthoCellix is completed.
Carisma Therapeutics Stock Movement Today
Carisma Therapeutics stock was up 164.6% in pre-market trading on Tuesday, following a 5.7% drop in the prior day of trading. The shares have fallen 48.81% year-to-date and 78.5% over the past 12 months. Today’s strong movement came with heavy trading, as some 133 million shares changed hands, compared to a three-month daily average of about 3.5 million units.
Is Carisma Therapeutics Stock a Buy, Sell, or Hold?
Turning to Wall Street, coverage of Carisma Therapeutics is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates CARM stock a Neutral (41) with no price target. It cites “poor financial performance and weak valuation” as reasons for this stance.
