Ruthigen, Inc. (NASDAQ: RTGN), a biopharmaceutical company, merged with Pulmatrix, Inc., a Lexington, Massachusetts-based clinical stage biotechnology company.
Pulmatrix will become a wholly-owned subsidiary of Ruthigen and all of its prior debt and equity securities will be exchanged for shares of Ruthigen common stock representing approximately 81% of its outstanding common stock.
In connection with the merger, existing institutional investors in Pulmatrix entered into stock purchase agreements with the company to invest an additional $10m upon the closing of the merger.
Pulmatrix also raised approximately $4.5m in February 2015, in contemplation of entering into the merger agreement.
Upon completion of the merger, Ruthigen will be renamed Pulmatrix, and, pending NASDAQ approval of the merger, the combined company’s common stock will continue to trade on The NASDAQ Capital Market. It will focus its resources and efforts on the development of Pulmatrix’s next-generation inhaled therapeutic products.
Dr. Robert Clarke, President and Chief Executive Officer of Pulmatrix, will be appointed as the President and Chief Executive Officer of the combined company, which will be headquartered in Lexington, Massachusetts.
The merger, which has been approved by the board of directors of both companies, is subject to some closing conditions, including NASDAQ approval of an initial listing of the merged entity’s common stock on NASDAQ on a post-merger basis, approval of the merger by stockholders of Ruthigen and Pulmatrix, and other customary closing conditions.
FinSMEs
17/03/2015
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