Advaxis Inc. (ADXS) Stock Gets Attention: Will it hit $1 This Week?

The shares of Advaxis Inc. (NASDAQ:ADXS) is on roll as the company agreed Tuesday to merge with privately held pharmaceutical-development company Biosight Ltd. to create a new listed company, sparking a nearly 50% rally in the clinical-stage biotechnology company’s shares.

Under the agreement between the companies, Advaxis said it would buy all Biosight’s outstanding share capital in exchange for newly issued Advaxis shares. It said the deal has been approved by the board of both companies and, when completed, would see Advaxis’s then-current equity holders own about 25% and the former Biosight equity holders about 75% of Advaxis’s stock.

The combined company is expected to have approximately $50 million in cash, cash equivalents and marketable securities at closing. Following the closing, which is expected to occur in the second half of 2021, Advaxis will be renamed Biosight Therapeutics and is expected to trade on the Nasdaq Capital Market under the ticker symbol “BSTX”.

Shares of ADXS soared 33% to $0.63 on hefty volume, off session high of $0.71.

“After an extensive and thorough review of strategic and potentially transformative options for Advaxis, we are very pleased to announce a proposed merger with Biosight,” said Kenneth A. Berlin, President, Chief Executive Officer and Interim Chief Financial Officer of Advaxis. “We believe the combined company’s strong and diversified oncology pipeline with late stage and early stage assets, near-term milestones, seasoned leadership team and focus on both hematological malignancies and solid tumors have the potential to provide transformative benefits to patients while also providing value to our stockholders.”