GRTX · Galera Therapeutics, Inc.

Galera Therapeutics (GRTX) has entered a definitive merger agreement with Obsidian Therapeutics, creating a combined entity where Obsidian pre-merger equityholders will hold majority ownership at 53.2% on a fully diluted basis, reflecting Obsidian's $413.5M valuation versus Galera's $13.8M (assuming $1.8M net cash). Galera's existing shareholders (excluding PIPE) retain minimal 1.8% stake, underscoring the transaction's structure favoring Obsidian's asset base. Concurrently, a $350M PIPE financing via Series C Preferred issuance to institutional investors will fund operations through H2 2028, covering key milestones like OBX-115 NSCLC Phase 1 data (1H27) and melanoma registration data (YE27). PIPE converts to ~45% ownership post-merger. Transaction includes locked support agreements covering 51.1% Galera and 62.8% Obsidian shares, Obsidian lock-ups, and Galera CVRs capturing 95% net proceeds from legacy assets (tilarganine, GC4419/GC4711). Closing hinges on approvals, Nasdaq listing, S-4 effectiveness by Q3 2026. Termination fees provide protection: Obsidian $1.25M to Galera, Galera $0.75M to Obsidian under breach/superior offer scenarios. This positions the combined Obsidian-led entity to advance engineered TIL therapies while Galera shareholders gain PIPE liquidity and CVR upside.