Homology Medicines To Merge With Q32 Bio; Homology Medicines Down In Pre-market

(RTTNews) - Homology Medicines, Inc. (FIXX) on Thursday announced that it has entered into a definitive merger agreement with Q32 Bio Inc., a biotechnology company in an all-stock transaction.

Upon conclusion of the deal, the combined company will operate as Q32 Bio and will trade under the Nasdaq ticker symbol "QTTB". Homology Medicines will issue common shares to pre-merger Q32 Bio stockholders as consideration in exchange for stock of Q32 Bio that will be cancelled.

Homology Medicines stockholders will own around 25 percent of the combined company and pre-merger Q32 Bio stockholders will own around 75 percent of the combined company.

Q32 Bio has entered into an agreement for a $42 million private placement with participation from existing and new investors including OrbiMed, Sanofi Ventures and Bristol Myers Squibb to name a few.

Proceeds from the transaction will be used to advance the clinical development of Q32 Bio's two wholly owned assets, bempikibart (ADX-914) and ADX-097.

Jodie Morrison, current CEO of Q32 Bio will be the chief executive of the combined company.

In pre-market activity, Homology Medicines shares are trading at $0.82, down 6.54% on the Nasdaq.