Longevity will receive American depositary shares, to be listed on the NASADAQ exchange, representing 4D ordinary shares, on terms that assume a value of 110p per 4D share.
4D shares closed at 93.2p on Wednesday.
Longevity shareholders will end up owning around 13.1% of the merged company’s equity, with 4D shareholders owning the rest. The merged company’s listing on NASDAQ is expected to become effective in early 2021.
“The merger will accelerate and de-risk 4D's admission to NASDAQ while providing immediate access to additional funds to support our pipeline,” said Duncan Peyton, the chief executive officer of 4D in a statement.
“We expect that a NASDAQ Listing will allow 4D to capitalise on increased interest from US healthcare investors in recent years and provide access to a much larger pool of specialist capital, thereby increasing our global profile and exposure. NASDAQ is an attractive market for growing, innovative biotech companies,” Peyton said.
Matthew Chen, the chief executive officer of Longevity, said it chose to merge with 4D after checking out a lot of other opportunities.
The Longevity team determined that the merger with 4D would provide the greatest value to its shareholders.
“4D is developing promising biotherapeutics to address unmet medical needs. We are impressed by 4D management team's track record in drug development and partnership building,” said Matthew Chen, the chief executive officer of Longevity.