Aethlon Medical (NASDAQ: AEMD) has entered into a definitive all-stock merger agreement with privately held North Immunology, Inc., with the combined company expected to trade on the Nasdaq Capital Market under the ticker NRTX upon deal closure.

The transaction includes a concurrent private placement that is expected to generate approximately $180 million in gross proceeds, inclusive of the conversion of roughly $34 million in outstanding convertible promissory notes. The financing was backed by institutional investors including Bain Capital Life Sciences, Janus Henderson Investors, Deep Track Capital, Longitude Capital, and others. The combined company is expected to carry a pro forma equity value of approximately $346.5 million.

North Immunology's lead asset, NOR-101, is a half-life extended bispecific antibody targeting IL-13 and IL-18, designed to inhibit both type 2 and non-type 2 inflammation associated with atopic dermatitis. In a non-human primate study, the drug candidate showed an approximately 42-day half-life. No clinical studies of NOR-101 have been conducted to date.

A Phase 1a study is expected to begin in the first quarter of 2027, with interim pharmacokinetic and safety data anticipated by mid-2027. Phase 1b and Phase 2b topline data are expected in 2028. The $180 million in proceeds is expected to fund operations into the second half of 2028.

Under the merger terms, pre-merger Aethlon stockholders are expected to own approximately 4.75% of the combined company, while North Immunology stockholders, including private placement participants, are expected to hold approximately 95.25%. Aethlon stockholders will also receive contingent value rights tied to any future monetization of Aethlon's legacy Hemopurifier business.

The transaction has been approved by the boards of both companies and is expected to close in the first quarter of 2027, subject to stockholder approval, SEC registration effectiveness, and Nasdaq listing approval. The combined company will operate under the North Immunology name and be led by North Immunology's existing management team.