Heat Biologics, a United States-based biotechnology company focused on the field of cancer immunotherapy, has agreed to purchase an 80% controlling stake in Pelican Therapeutics, a privately held immuno-oncology company engaged in the development of agonists to TNFRSF25, a differentiated T cell costimulatory receptor.

It was reported yesterday that under the deal, Heat Biologics will pay Pelican stockholders that participate in the acquisition an upfront cash payment not to exceed USD500,000 and will issue an aggregate of 1,323,021 shares of Heat common stock, representing 4.99% of the outstanding shares of Heat common stock. Heat will also cause to pay certain clinical and commercialisation milestone payments, royalty and sublicensing income payments, and Heat will loan Pelican amounts sufficient to pay Pelican's transaction expenses.

The acquisition is based on certain closing conditions, including the agreement of the holders of 80% of the outstanding capital stock of Pelican, on a completely diluted basis, to participate in the acquisition and sign a stockholders agreement with respect to their remaining Pelican shares. The deal is likely to be completed no later than 30 April 2017, subject to applicable regulatory approvals and other customary terms and conditions.