Cellect Biotechnology Ltd. [NASDAQ: APOP] has confirmed the finalization of the strategic merger agreement with privately-held Quoin Pharmaceuticals. The strategic merger contract was earlier disclosed by the firm and the latest development is that the firm has received the authorization of all the shareholders.
Cellect revealed that the shareholders have also provided the authorization for all other proposals submitted at the Special General Meeting of shareholders organized on September 26, 2021. The authorization includes the sale of the unit of the firm, Cellect Biotherapeutics Ltd, to EnCellX Inc. which is a privately held firm headquartered in San Diego, CA.
Furthermore, at the Special General Meeting, nearly 99% of the votes were cast in favor of the strategic merger agreement. The firm has submitted the results of the Special General Meeting, as arranged by an independent inspector of election, in a Current Report on Form 6-K with the U.S. SEC. The strategic merger is likely to complete in October 2021.
In addition, after the execution of the strategic merger, Cellect will change its name to Quoin Pharmaceuticals, Ltd., and will commence trading on the Nasdaq Capital Market under the symbol “QNRX”. Moreover, the contract and Plan of Merger and Reorganization has been revised by the parties there in order to expand Outside Date thereunder from September 30, 2021, to November 1, 2021.
The divestiture of the intellectual property (IP) to EnCellX will be at the same time as the execution of the strategic merger with Quoin Pharmaceuticals. Earlier, the firm has got a notice from the Nasdaq listing department that it no longer meets Nasdaq Listing Rule for continued listing, but the firm disclosed that it is planning to reclaim compliance to Nasdaq by November 5, 2021.