Pulmatrix shares fall 15.86% intraday as merger with Cullgen faces delays, prompting exploration of alternatives.

Pulmatrix intraday dropped 15.86% as the company announced it had waived the "No Solicitation" clause in its merger agreement with Cullgen to explore alternative transactions while continuing to seek approval from the China Securities Regulatory Commission (CSRC). Despite shareholder approval in June 2025 and SEC filings completed, the CSRC has not yet greenlit the deal. The decision to suspend exclusivity and prioritize flexibility amid regulatory delays likely raised investor concerns about the merger’s viability or timeline, triggering a sharp sell-off. The company emphasized its cash reserves remain sufficient through 2026, but the uncertainty surrounding the strategic merger and potential asset divestitures weighed on sentiment during intraday trading.