Lisata Therapeutics Provides Update Following Termination of Merger Agreement

On August 4, 2026 Lisata Therapeutics, Inc. (Nasdaq: LSTA) ("Lisata"), a clinical-stage pharmaceutical company developing innovative therapies for the treatment of advanced solid tumors and other serious diseases, reported an update following the termination of its merger agreement with Kuva Labs Inc. and its subsidiary Kuva Acquisition Corp. (collectively, "Kuva").

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Lisata has filed suit in the Delaware Court of Chancery against Kuva over Kuva’s breach of the previously-disclosed Agreement and Plan of Merger dated March 6, 2026 (as amended, the "Merger Agreement"), seeking, among other things, damages for the benefit of its stockholders and the $2,000,000 termination fee Lisata is owed under the Merger Agreement.

Lisata’s Board of Directors continues to evaluate strategic alternatives to enhance stockholder value, which will include, but are not limited to, an acquisition, merger, reverse merger, other business combination, sales of assets, liquidation and dissolution, among other strategic transactions. The Company has not set a timetable for completion of this strategic review and does not intend to comment further on the status of this process unless or until its Board of Directors has approved a definitive course of action, or it is determined that another disclosure is warranted.

In order to reduce operating expenses and preserve cash to pursue strategic alternatives, Lisata has implemented a reduction in force, eliminating approximately 72% of its full-time employees, including its Executive Vice President of R&D and Chief Medical Officer position. Certain members of the separated staff may be engaged as external consultants for a period of time, as necessary.

(Press release, Lisata Therapeutics, AUG 4, 2026, View Source [SID1234669686])