Oncology-focused biotech Leap Therapeutics (NASDAQ:LPTX) misplaced ~2% pre-market Tuesday after saying an settlement with privately-held Flame Biosciences to acquire the latter in an all-stock transaction.

The deal will add Flame’s ~$50M of year-end internet money, its Phase 2 most cancers candidate FL-301, and two preclinical antibody candidates, FL-302 and FL-501, to Leap’s (LPTX) pipeline.

Per the phrases, Leap (LPTX) will subject ~19.8M shares of its widespread stock and ~136.8K of Series X non-voting convertible most popular stock, every of which is able to ultimately convert to 1K shares of widespread stock, to Flame buyers.

In addition, the corporate pays 80% of the after-tax internet proceeds from any post-merger offers to out-license or promote Flame’s anti-IL-1b antibodies, FL-101 or FL-103.

The mixed firm shall be led by Leap’s (LPTX) administration and proceed to commerce on Nasdaq with the ticker “LPTX.” Its year-end money stability of ~$115M is predicted to be adequate to fund the mixed firm’s working bills and medical packages for FL-301 and Leap’s (LPTX) Phase 2 most cancers candidate DKN-01.

In October, Leap (LPTX) introduced the beginning of enrollment in its Phase 2 trial for DKN-01 together with Roche’s (OTCQX:RHHBY) (OTCQX:RHHBF) normal of care bevacizumab and chemotherapy in colorectal most cancers.