Yumanity Therapeutics NasdaqCM:YMTX Stock Report

Second quarter 2022 earnings released: US$0.45 loss per share (vs US$1.03 loss in 2Q 2021)

Second quarter 2022 results: US$0.45 loss per share (up from US$1.03 loss in 2Q 2021). Revenue: US$1.66m (down 22% from 2Q 2021). Net loss: US$4.85m (loss narrowed 54% from 2Q 2021).

Kineta, Inc. entered into definitive agreement to acquire Yumanity Therapeutics, Inc. (NasdaqCM : YMTX) in a reverse merger transaction

Kineta, Inc. entered into definitive agreement to acquire Yumanity Therapeutics, Inc. (NasdaqCM : YMTX) in a reverse merger transaction on June 5, 2022. Upon completion of the proposed merger, on a pro forma basis and based upon the number of Yumanity shares to be issued in the proposed merger, current Kineta stockholders are expected to own approximately 85% of the combined company and current Yumanity stockholders are expected to own approximately 15% of the combined company. Upon closing of the proposed transaction, Yumanity Therapeutics, Inc. will be renamed Kineta, Inc., and will be headquartered in Seattle, Washington. Shawn Iadonato will serve as Chief Executive Officer and Craig Philips will serve as President of the combined company. The merger agreement provides that the Board of Directors of the combined company will comprise six members, three designated by Kineta and two designated by the current Yumanity board, in addition to the combined company’s Chief Executive Officer. Yumanity may be required to pay Kineta a termination fee equal to $500,000. Kineta may be required to pay Yumanity a termination fee equal to $1,000,000. The transaction is subject to customary closing conditions, including approval of both transactions by the stockholders of Yumanity, Effectiveness of Registration Statement, Concurrent Financing, Yumanity having a minimum of $7,500,000 in net cash and the listing of the Shares on the Nasdaq Capital Market. The Yumanity Board of Directors has unanimously approved both definitive agreement. The Kineta Board of Directors has unanimously approved the definitive merger agreement with Yumanity. The transaction is expected to close in the second half of 2022. John T. Haggerty and Jean A. Lee of Goodwin Procter LLP served as legal counsel to Yumanity. Blake Ilstrup, Hari Raman and Albert W. Vanderlaan of Orrick, Herrington & Sutcliffe LLP served as legal counsel to Kineta.

Kineta, Inc. entered into definitive agreement to acquire Yumanity Therapeutics, Inc. (NasdaqCM : YMTX) in a reverse merger transaction

Price target decreased to US$22.00

Down from US$36.67, the current price target is an average from 3 analysts. New target price is 1,882% above last closing price of US$1.11. Stock is down 92% over the past year. The company is forecast to post a net loss per share of US$4.42 next year compared to a net loss per share of US$3.84 last year.