NLS and Kadimastem move forward with merger plans

ZURICH and NESS ZIONA, Israel - Shareholders of Kadimastem Ltd. (TASE: KDST), a cell therapy company currently valued at $18.19 million, have approved a merger with Swiss biopharmaceutical firm NLS Pharmaceutics Ltd. (Nasdaq: NLSP), advancing the creation of a combined entity focused on developing therapies for neurodegenerative diseases and diabetes. The announcement follows a special general meeting held on January 30, 2025, where Kadimastem’s shareholders gave their consent to the union. The company’s stock has shown remarkable momentum, delivering a 178% return over the past year, though InvestingPro analysis suggests the stock may be overvalued at its current price of $4.34.

This pivotal decision marks a significant progression in the merger process, which is expected to result in a Nasdaq-traded biotechnology company. Both companies are currently preparing for final approvals, with NLS planning its own shareholder meeting to ratify the merger. According to InvestingPro data, Kadimastem maintains a GOOD overall financial health score despite reporting negative EBITDA of $1.92 million in its latest reporting period.

Ronen Twito, Executive Chairman and CEO of Kadimastem, expressed satisfaction with the shareholder endorsement, anticipating the merger to leverage the joint strengths of both companies in biotechnology. Alex Zwyer, CEO of NLS, echoed these sentiments, highlighting the potential benefits of the combined efforts.

The merger is set to bring together NLS’s experience in central nervous system disorders with Kadimastem’s cell therapy platforms, including AstroRx® for ALS treatment and IsletRx for diabetes. The aim is to address unmet medical needs and enhance value creation for shareholders.

While the companies anticipate the successful completion of the merger, they remain cautious, acknowledging various risks and uncertainties that could impact the process and outcomes. These include the satisfaction of closing conditions, regulatory approvals, and potential market reactions. InvestingPro subscribers can access additional risk metrics and 8 more exclusive ProTips to better evaluate the merger’s potential impact on their investment decisions.

The information provided is based on a press release statement, and further details about the merger will be available through documents filed with the SEC, which can be accessed at www.sec.gov and on the companies’ respective websites.

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