Rare Disease Player Cyclo Therapeutics To Merge With Applied Molecular Transport

Applied Molecular Transport Inc (NASDAQ:AMTI) has agreed to merge with Cyclo Therapeutics Inc (NASDAQ:CYTH) in an all-stock transaction.

Following the merger's closing, the combined company will operate under Cyclo Therapeutics and continue trading on The Nasdaq Capital Market under the CYTH ticker.

The combined company will focus on advancing Cyclo Therapeutics' pivotal Phase 3 global study (TransportNPC) evaluating Trappsol Cyclo for Niemann-Pick Disease Type C1.

The transaction is expected to close in the fourth quarter of 2023.

Under the terms of the Merger Agreement, AMT stockholders will receive approximately 0.174 shares of Cyclo Therapeutics in exchange for each of their shares in AMT. 

Cyclo Therapeutics expects to issue approximately 7.624 million shares of Cyclo Therapeutics' common stock to AMT shareholders, equating to approximately 25% of the combined company on a fully diluted basis.

The existing Cyclo Therapeutics management team will lead the combined company. 

After the transaction's closing, Shawn Cross, Chief Executive Officer and Board Chair of AMT, will be appointed to the Cyclo Therapeutics Board of Directors.

Price Action: CYTH shares are down 2.50% at $1.56, and AMTI shares are up 10.10% at $0.23 on the last check Thursday.