Akari Therapeutics and Peak Bio Successfully Merge

Akari Therapeutics, Plc (Nasdaq: AKTX) has successfully merged with Peak Bio, Inc., forming a new biotechnology company dedicated to advancing treatment options for various diseases. This merger aims to leverage the strengths of both companies in developing Antibody Drug Conjugates (ADCs) and innovative therapies for autoimmune and inflammatory diseases, including Geographic Atrophy (GA).

Samir Patel, MD, Akari's Interim President & CEO, expressed excitement about the merger's completion and emphasized the importance of the company's post-merger financial stability as shown in their Form 8-K report. This merger aims to address shareholder equity issues and enable the company to meet Nasdaq's shareholder standards. Over the next year, the company plans to focus on achieving milestones related to Antibody Drug Conjugates and Geographic Atrophy.

The merger brings immediate capital from PIPE financing and access to a $50m Equity Line of Credit (ELOC). This financial backing will support the development of the company's leading assets, aiming to bring new treatment options to diseases with significant unmet medical needs. Dr. Patel voiced optimism about the company's strategic plans and financial health post-merger.

Dr. Hoyoung Huh, Chairman and Founder of Peak Bio, will now serve as the new Chairman of Akari. He conveyed his enthusiasm for leading the company into a promising future, emphasizing the utilization of current assets and programs to enhance shareholder value. Dr. Huh also expressed gratitude to the outgoing Chairman, Dr. Ray Prudo, for his contributions and ongoing support.

Regarding the financing aspect, Akari entered into a definitive agreement on November 13, 2024, to sell 1,713,402 unregistered American Depository Shares (ADSs) and Series C Warrants. The ADSs were priced at $1.70 per unit for general investors and $2.385 for insiders, reflecting the Nasdaq closing bid price plus a small premium. The warrants, valid for three years, include cashless exercise provisions and are exercisable at $2.26 per ADS.

The private placement is expected to close shortly after the merger, subject to standard closing conditions. Paulson Investment Company LLC served as the placement agent, while Chardan advised on the merger and will continue to assist with future financing.

Additionally, on November 13, 2024, Akari secured a $50m equity line of credit (ELOC) with White Lion Capital, LLC. This agreement allows Akari the option to sell up to $50m in newly issued ADSs over three years, contingent on filing and approval of a resale registration statement with the SEC. Decisions regarding ADS sales to White Lion will depend on various factors, including market conditions and the company's funding needs.

Akari Therapeutics, Plc is a biotechnology company focused on developing therapies for autoimmune and inflammatory diseases. Their lead asset, investigational nomacopan, is a bispecific recombinant inhibitor targeting complement C5 activation and leukotriene B4 (LTB4) activity. The company is also conducting pre-clinical research on long-acting PAS-nomacopan for Geographic Atrophy.

This merger and the accompanying financial arrangements position Akari to continue its development of promising treatments and explore new opportunities for addressing high-need medical conditions. The combined expertise and resources of Akari and Peak Bio are expected to drive significant advancements in the field of biotechnology.