Carisma Therapeutics stock soars after merger agreement with Ocugen

Published 02/09/2025, 20:58
© Reuters.

Investing.com -- Carisma Therapeutics Inc (NASDAQ:CARM) stock surged 107% following news of its merger agreement with Ocugen Inc (NASDAQ:OCGN) and a related private placement investment.

The company has entered into an agreement where Azalea Merger Sub, a wholly owned subsidiary of Carisma, will merge with OrthoCellix, a wholly owned subsidiary of Ocugen. Under the terms announced, OrthoCellix will continue as a wholly owned subsidiary of Carisma and the surviving company of the merger.

As part of the deal, Carisma entered into a subscription agreement with Ocugen on August 29, 2025, for a private placement investment of $5 million in Carisma common stock. This investment is part of a larger anticipated concurrent investment expected to raise at least $25 million in aggregate gross proceeds.

The price per share for the Ocugen investment will be calculated by dividing the aggregate valuation by the post-closing parent shares, as defined in the merger agreement. The transaction is subject to approval by Carisma’s stockholders under Nasdaq rules and other customary closing conditions.

Chardan Capital Markets LLC and Lake Street Capital Markets, LLC are serving as placement agents for the Ocugen investment. The companies also plan to enter into a registration rights agreement for the resale of certain shares of common stock held by investors participating in the concurrent investment.

The merger and related investments represent a significant development for Carisma, as reflected in today’s substantial stock price movement.

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

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