On November 6, 2023, Frequency Therapeutics Inc (FREQ, Financial) announced the completion of its previously announced business combination with Korro Bio, Inc. The combined company will operate under the name Korro Bio, Inc., and its shares are expected to begin trading on the Nasdaq Capital Market under the ticker symbol "KRRO".
Financial Highlights
Immediately prior to the merger, Korro completed a $117 million private placement co-led by Surveyor Capital and Cormorant Asset Management, with participation from several other investors. Following the transactions, Korro's cash, cash equivalents, and investments of approximately $170 million, after transaction expenses, are expected to fund operations and multiple potentially value-creating milestones into 2026.
Company's Future Plans
The company plans to advance its lead product candidate in AATD through a clinical milestone, progress additional product candidates from the pipeline into the clinic, and demonstrate the applicability of the RNA editing platform into several additional tissue types. "This transformative transaction provides us with the capital to demonstrate the potential of our proprietary RNA editing platform, OPERATM, to develop novel genetic therapies that hold new promise for patients and caregivers," said Ram Aiyar, PhD, Chief Executive Officer of Korro.
Transaction Details
Prior to the merger, Frequency enacted a 1-for-50 reverse stock split of its common stock. Following the reverse stock split and the closing of the merger, there are approximately 8,001,283 shares of the combined company's common stock outstanding, with prior Frequency stockholders owning approximately 9.5% and prior Korro Bio stockholders holding approximately 90.5% of the combined company's outstanding common stock.
About Korro Bio, Inc.
Korro is a biopharmaceutical company with a mission to discover, develop, and commercialize a new class of genetic medicines based on editing RNA, enabling treatment of both rare and highly prevalent diseases. Korro's lead program in AATD has demonstrated an increase of normal A1AT protein up to 85% of total A1AT protein in circulation in in vivo preclinical studies, which has the potential of disease-modifying effects and providing a differentiated therapeutic option.
Explore the complete 8-K earnings release (here) from Frequency Therapeutics Inc for further details.
