Note 6 - Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

6. Stockholders’ Equity

Proposed Acquisition

On February 21, 2022, the Company entered into an agreement and plan of merger pursuant to which it has agreed to acquire Cancer Prevention Pharmaceuticals, Inc. (“CPP”), a private clinical stage company developing therapeutics to reduce the risk and recurrence of cancer and rare diseases, for a combination of stock and future milestone payments. The combined entity will have an expanded pipeline; areas of initial focus include familial adenomatous polyposis, first-line metastatic pancreatic cancer, neoadjuvant pancreatic cancer, colorectal cancer prevention and ovarian cancer. The combined development programs boast a steady cadence of catalysts with programs ranging from pre-clinical to registration studies.

Under the terms of the agreement and plan of merger, the holders of CPP’s outstanding capital stock immediately prior to the merger will receive shares of common stock of Panbela upon closing of the mergers. Panbela stockholders are expected to retain a majority of the outstanding shares of the post-merger holding company. CPP stockholders will be eligible to receive contingent payments totaling a maximum of $60 million from milestone and royalty payments associated with the potential approval and commercialization of the lead asset.

The issuance of shares is subject to shareholder approval and it is expected that the mergers will be completed, if the share issuance is approved, by the end of the second quarter of 2022.

Shares reserved

The following shares of common stock were reserved for future issuance as of the date indicated:

	March 31, 2022
Stock options outstanding		2,444,136
Restricted stock units		5,395
Shares available for grant under equity incentive plan		2,019,776
Warrants outstanding		5,109,501
		9,578,808