Why Brooklyn ImmunoTherapeutics Crushed the Market Today

Shares of Brooklyn ImmunoTherapeutics (NYSEMKT: BTX), no stranger to sharp stock price movements lately, zoomed more than 6% higher on Monday. The catalyst was an acquisition announced that morning by the clincial-stage biotech company.

In a joint press release, Brooklyn and Novellus Therapeutics announced that the former has executed a letter of intent to acquire the latter. The next step is for the two to sign a definite agreement; the letter of intent stipulates that Brooklyn will pay a total of $125 million for privately held Novellus. Of this, nearly $108 million will be paid in Brooklyn stock, with the remainder in cash.

The two companies added that they intend to close the deal on or prior to July 15.

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Source Fool.com