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CALABASAS, Calif. - NeOnc Technologies Holdings, Inc. (NASDAQ:NTHI), a $110 million market cap biotechnology company whose stock has surged 73% in the past week, has signed a non-binding term sheet with Quazar Investment to form a UAE-based investment and clinical platform focused on the Middle East and North Africa region, according to a press release statement. According to InvestingPro analysis, the company appears overvalued at current levels.
The agreement outlines the formation of NuroMENA Holdings Ltd, a wholly owned holding company of NeOnc, which will oversee NuroCure, an Abu Dhabi operating subsidiary responsible for managing clinical trials for NeOnc’s drug candidates across the UAE and wider MENA region.
The term sheet contemplates a $50 million equity investment priced at $25 per share, with 70% allocated to acquire NeOnc common stock and 30% directed toward clinical trials and infrastructure development. The proposed share price represents a significant premium to the current trading price of $5.80, which sits closer to the 52-week low of $3.20 than the high of $25.00. The transaction closing is subject to several conditions that must be completed within 120 days, including board approval, legal formation of the entities, and execution of a sub-license agreement.
The partnership will leverage clinical trial infrastructure through Cleveland Clinic Abu Dhabi, which conducts trials under US FDA protocols. NeOnc’s Scientific Advisory Board includes Dr. David Peereboom, Head of Neuro-Oncology at Cleveland Clinic.
NuroCure will initiate clinical trials in the UAE for NEO100, targeting Diffuse Intrinsic Pontine Glioma, and NEO212, a therapy for glioblastoma multiforme.
Amir Heshmatpour, Executive Chairman of NeOnc, stated the partnership "should allow us to bring our lifesaving work into the heart of the MENA region."
Quazar Investment, described as a $3.3 billion family office and holdings platform, conducts 99% of its business with UAE Government entities.
The definitive documentation is expected by July 10, 2025, though the transaction remains subject to various conditions and final approvals. InvestingPro data reveals the company faces significant financial challenges, with a weak overall health score and current ratio of 0.41, indicating potential liquidity concerns. Discover more insights and 8 additional ProTips with an InvestingPro subscription.
In other recent news, NeOnc Technologies Holdings, Inc. has entered into a non-binding agreement with Quazar Investment for a $50 million investment to establish a platform for brain cancer clinical trials in the Middle East and North Africa. The agreement includes the formation of NuroMENA Holdings Ltd, which will oversee NuroCure, an Abu Dhabi subsidiary managing clinical trials for NeOnc’s drug candidates. This marks NeOnc’s first international expansion, with the investment allocated toward acquiring NeOnc common stock and developing clinical trials and infrastructure. The partnership will utilize Cleveland Clinic Abu Dhabi’s trial infrastructure, adhering to US FDA protocols. Additionally, NeOnc Technologies has appointed Dr. Josh Neman as Chief Clinical Officer. Dr. Neman, known for his work in cancer neuroscience, will lead the company’s clinical development strategy, including the advanced Phase 2a trial of the lead compound NEO100. His appointment aligns with NeOnc’s efforts to enhance therapeutic options for CNS cancer patients. The company is also exploring AI and quantum computing to improve its drug delivery platform, underscoring its commitment to innovation in CNS cancer treatments.
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