Recursion, Exscientia seek support for merger ahead of special meeting

AI-focused drug discovery firms Recursion (NASDAQ:RXRX) and Exscientia (NASDAQ:EXAI) on Thursday solicited shareholder support for their proposed merger agreement at upcoming investor meetings next month.

In August, Recursion (RXRX), whose backers include chipmaker Nvidia (NVDA), agreed to acquire its smaller rival Exscientia (EXAI) in an all-stock deal.

As part of the agreement, investors of U.K.-based Exscientia (EXAI) will receive 0.7729 shares of RXRX Class A common stock for each ordinary share they own once the deal is completed by early 2025.

Issuing a joint proxy statement, the duo sought shareholder backing for the deal, noting that the transaction would not be complete if Recursion (RXRX) investors disagreed with the issuance of new shares and Exscientia (EXAI) investors opposed the deal structure.

The companies have scheduled the respective stockholder meetings on Nov. 12 to gain investors’ support.