Aileron Therapeutics Inc. has completed its acquisition of Lung Therapeutics Inc. through a merger agreement, with Lung becoming a wholly owned subsidiary of Aileron. The merger is intended to be a tax-free reorganization. Aileron issued 344,566 shares of common stock and 20,140 shares of newly designated Series X Preferred Stock to Lung stockholders. Aileron also assumed all Lung stock options and warrants. Aileron plans to hold a stockholders meeting to seek approval for the conversion of the Series X Preferred Stock into common stock and an amendment to its certificate of incorporation. Aileron also entered into stockholder support agreements and lock-up agreements with certain individuals. Aileron completed a private placement and stock and warrant purchase agreement with a group of accredited investors, raising approximately $18.0 million. Aileron has dismissed its independent registered public accounting firm, PricewaterhouseCoopers LLP, and is in the process of evaluating the accounting treatment of the merger. Brian Windsor has been appointed as President and Chief Operating Officer of Aileron. Jeffrey A. Bailey, Jodie P. Morrison, and William T. McKee have resigned from the Board of Directors, and William C. Fairey and Alan A. Musso have been elected as directors. Aileron has filed a Certificate of Designation of Preferences, Rights, and Limitations of the Series X Preferred Stock. Aileron estimates that its combined cash and cash equivalents, as of September 30, 2023, will fund its operations into the fourth quarter of 2024. Aileron has issued a press release and corporate presentation regarding the merger and post-merger business.