Instinct Brothers to merge with Relativity Acquisition Cor

NEW YORK, NY - Instinct Brothers Co., Ltd., a Japanese regenerative medicine company, announced a definitive business combination with Relativity Acquisition Corp., a special purpose acquisition company. The merger, expected to close in Q3 2025, will result in Instinct Brothers becoming a wholly-owned subsidiary of Relativity. According to InvestingPro data, the stock has shown strong momentum with an 11% return over the past year.

The combined entity, to be named Instinct Bio Technical Company Inc., plans to list on the NASDAQ Stock Exchange under the ticker symbol ’BIOT’. The transaction values the merged company at an implied pro-forma enterprise value of approximately $242 million, assuming no redemptions by Relativity’s public stockholders. InvestingPro analysis indicates a FAIR financial health rating, with the stock currently trading at $10.86, near its 52-week high of $11.26. For deeper insights into BIOT’s valuation and growth potential, subscribers can access the comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US equities.

Instinct Brothers, established in 2017, is known for its vertically integrated platform that includes stem-cell-based cosmeceuticals, research and development, proprietary manufacturing, and clinical application research in regenerative medicine. The company’s founder, Tomoki Nagano, will continue to lead the combined company post-merger.

Tomoki Nagano commented on the transaction, highlighting the opportunity to accelerate global expansion and enhance access to stem cell-based therapies. Tarek Tabsh of Relativity Acquisition Corp. praised Instinct Brothers for its scientific innovation and vertically integrated platform.

The merger is subject to approval by Relativity’s stockholders and other customary closing conditions. Chardan Capital Markets LLC is serving as the M&A and Capital Markets advisor to Instinct Brothers Holdings, with Darryl, Edward & Co. as a legal advisor. Relativity Acquisition Corp. is advised by Loeb & Loeb LLP and Barnett & Linn LLP.

This strategic move is expected to scale operations and broaden the clinical footprint of Instinct Brothers, which aims to improve health and longevity through regenerative treatments. The company has plans to expand its clinic model into Malaysia and Indonesia, construct new clinics in Japan, and advance its Cell Processing Center joint venture. The expansion outlook appears promising, with InvestingPro data showing positive momentum through a 9.52% year-to-date price return. Discover more exclusive insights and detailed analysis about BIOT’s growth potential through InvestingPro’s advanced financial metrics and expert research tools.

The information is based on a press release statement.

In other recent news, BioTage has reported a strong financial performance for the full year, achieving over $1 billion in revenue, marking a 10.5% increase year-over-year. Despite a 9.5% decline in fourth-quarter revenues, the company improved its gross margins to 62.7% and saw a significant 33% increase in adjusted cash from operations. The company is preparing for potential revenue volatility in 2025 due to the integration of the Astraea business, which is expected to bring both revenue and cost synergies, albeit with one-time integration costs projected at $25-30 million. Analysts from Handelsbanken and Nordea discussed BioTage’s strategic focus, noting that the company remains committed to its long-term revenue and profitability targets, despite the anticipated short-term volatility. The leadership at BioTage has undergone changes, with a focus on integrating Astraea and leveraging synergies across the two businesses. BioTage’s strategic initiatives include expanding its customer base in clinical Phase II and increasing market penetration in the peptide purification market. The company remains confident in its ability to drive growth and maintain its competitive edge in the industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.