Stocks In News: FFIE, DWAC, LVTX
2:36 pm Monday, September 26th, 2022
Shares of Faraday Future (NASDAQ:FFIE) are up by more than 10% after the company announced it had secured up to $100 million in funding and resolved a governance dispute with FF Top Holding, a large shareholder of FFIE stock. The firm controls about 36% of the voting power of the former special purpose acquisition company (SPAC). FF had previously sued Faraday in Delaware Chancery Court, claiming the board had “driven the company into the ground.” As part of the litigation, FF requested the removal of executive chair Susan Swenson and another director. This came as speculation arose that “certain directors” were conspiring to pursue a bankruptcy in order to fill their own pockets.
Digital World Acquisition Corp (NASDAQ:DWAC) has started another week in the red after receiving more bad news. Several private investment in public equity (PIPE) investors have issued their termination notices, effectively cutting ties with the controversial merger. This means a collective loss of $138.5 million in PIPE investment. According to an 8K form filed with the Securities and Exchange Committee (SEC), all investors gave notice of their termination decisions last week between Monday and Friday. Despite initially rising this morning, DWAC stock has since reversed direction and plunged back into the red. As of this writing, it is down 1% for the day. While that may not seem like a monumental decline, investors should be concerned with the bigger picture.
Lava Therapeutics (NASDAQ:LVTX) stock is rocketing higher on Monday as investors react to news of an exclusive global license agreement with Seagen (NASDAQ:SGEN). This agreement has Seagen agreeing to develop, manufacture and commercialize LAVA-1223. This is an advanced preclinical asset that makes use of Lava Therapeutics’ proprietary Gammabody technology. This allows it to target epidermal growth factor receptor (EGFR)-expressing solid tumors. That agreement has Seagen making an upfront payment of $50 million to Laval Therapeutics. It also includes up to $650 million in payments from development, regulatory and commercial milestones.