Aethlon Medical to merge with North Immunology in reverse merger backing IL-13 x IL-18 bispecific
The all-stock deal pairs Aethlon with private biotech North Immunology and an oversubscribed $180 million private placement to fund development of NOR-101 in atopic dermatitis.
Aethlon Medical, Inc. (Nasdaq: AEMD) announced on September 17, 2026 that it has entered into a definitive merger agreement for an all-stock transaction with North Immunology, Inc., using two merger subsidiaries, Nighthawk Merger Sub Corp. and Nighthawk Second Merger Sub, LLC, both wholly owned subsidiaries of Aethlon.1
North Immunology is a privately held biotechnology company developing bispecific antibodies that target orthogonal inflammatory pathways in immune and inflammatory diseases.1 Its lead candidate, NOR-101, is a half-life extended anti-IL-13 x IL-18 bispecific antibody designed to inhibit both the type 2 and non-type 2 inflammation that drives atopic dermatitis.1
Concurrent with the merger, institutional and accredited investors agreed to purchase North Immunology shares and pre-funded warrants for an aggregate purchase price of approximately $180 million, consisting of about $146 million in cash proceeds and about $34 million from conversion of outstanding convertible promissory notes.1 The financing is expected to fully fund operations into the second half of 2028.1
North Immunology's Phase 1a study of NOR-101 is expected to begin in Q1 2027, with interim PK and safety data expected by mid-2027, and Phase 1b and Phase 2b studies are intended to follow in 2027 with topline data in 2028.1
Under the deal terms, pre-merger Aethlon stockholders are expected to own approximately 4.75% of the combined company, and pre-merger North Immunology stockholders are expected to own approximately 95.25%, with a pro forma equity value of approximately $346.5 million.1 The combined firm will operate as North Immunology, Inc. and trade on Nasdaq under ticker NRTX.1
Aethlon stockholders will also receive a contingent value right entitling them to net proceeds from any future sale, license or other monetization of Aethlon's legacy Hemopurifier business.1
The transaction has been approved by both companies' boards and is expected to close in the first quarter of 2027, subject to stockholder approvals, SEC registration statement effectiveness, and Nasdaq listing approval.1 Separately, either party may terminate the agreement if the merger is not completed by June 17, 2027.1
Written by readthrough’s AI from the linked primary sources and fact-checked against them automatically before publishing. Not investment advice.