Advaxis Inc. (NASDAQ:ADXS) Stock Pulls Back on profit Booking: A Good Opportunity?

Advaxis Inc. (NASDAQ:ADXS) dropped 13% after surging 25% on Tuesday. The company announced the signing of a definitive agreement to merge with Biosight Ltd. As per the agreement terms, Biosight stockholders will become majority holders of the merged entity once they complete the transaction. The proposed combination will result in a public company focusing on clinical advancement and commercialization of Biosight’s lead candidate called aspacytarabine (BSTR-236).

The merged company expects to have approximately $50 million in cash and cash equivalents including marketable securities once the transaction closes. Closing the deal will occur in second half of 2021, with Advaxis changing its name to trade as Biosight Therapeutics on the Nasdaq exchange under “BSTX.”

In the next 12 to 18 months, the combined company will advance its product pipeline in various clinical studies and expects to release phase 2 aspacytarabine study topline results in AML patients’ treatment within that period. Therefore, in the coming weeks, it is worth to watch ADXS.

Market Reaction:

On Wednesday, ADXS stock fell 12.92% at $0.5068 with more than 28.68 million shares, compared to its average volume of 12.30 million shares. The stock had moved within a range of $0.4946 – 0.5838 after opening the trade at $0.58. Over the past 52-week, the stock has been trading within a range of $0.2640 – 1.5700.