(MENAFN- AsiaNet News) Shares of Atai Life Sciences rose to their highest level in over a year on Monday before pulling back slightly after the company announced plans to merge with Beckley Psytech in an all-share transaction.

Atai stock closed at $2.49 on Monday, up 7.8% for the day. After-hours trading showed a slight decline of 1.2% to $2.46.

The combined firm, to be named Atai Beckley, will consolidate both companies' clinical pipelines focused on psychedelic therapies for mental health conditions.

The merger is conditional on Phase 2b results from Beckley's BPL-003 trial in treatment-resistant depression, expected by mid-2025.

Beckley shareholders will receive approximately 105 million newly issued Atai shares, representing about 31% of the combined entity on a fully diluted basis.

Beckley is valued at approximately $390 million under the deal terms.

A concurrent $30 million private placement from Ferring Ventures S.A. and Adage Capital Partners LP is expected to close June 3.

The transaction is set to complete in the second half of 2025, pending shareholder and regulatory approvals.

On Stocktwits, retail sentiment was 'extremely bullish' amid a 7,700% surge in 24-hour message volume.

One user said they see every dip in Atai as a buying opportunity and are gradually adding to their position.

Another user said, "If I'm not holding Atai this year, I don't know what else I should hold."

Atai Life Sciences stock has risen 55.6% so far in 2025.

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