Klotho Neurosciences (NASDAQ:KLTO) announced it has agreed to acquire Greenland Mines Corp., a privately held Delaware company that controls an 80% stake in the Skaergaard Project in Southeast Greenland, one of the largest undeveloped deposits of palladium, gold, and platinum globally.
The companies signed a definitive merger agreement on March 3, with the transaction expected to close on March 4.
Following completion of the deal, Klotho’s current Chief Executive Officer and Chief Financial Officer will remain in their roles. Members of Greenland Mines’ leadership team, headed by CEO Bo Moller Stensgaard, will join the combined company’s management to lead a newly formed Greenland Mining division. The company also plans to appoint one additional member to its board of directors.
After the acquisition, Klotho will operate through two strategic divisions. The Natural Resources segment will focus on advancing exploration and development of the Skaergaard Project, while the Cell and Gene Therapy division will continue to develop the company’s biotechnology pipeline, including KLTO-202, its lead program targeting amyotrophic lateral sclerosis (ALS).
The transaction will be financed entirely through convertible preferred stock, with conversion subject to shareholder approval. On a fully diluted, as-converted basis, Greenland Mines Corp. is expected to hold approximately 93% of the combined company’s outstanding shares. For accounting purposes, the deal is expected to be treated as a reverse merger.
Klotho also said it intends to change its corporate name and stock ticker later in March. Existing shareholders will not need to take any action, as brokerage accounts will automatically reflect the updated ticker once the change takes effect.