Signal Genetics Inc (NASDAQ:SGNL) is to merge with privately-owned biopharmaceutical company miRagen Therapeutics.
The merger will see the holders of miRagen stock owning around 96% of the combined company.
An investor syndicate comprising existing miRagen investors and new investors have committed to pumping in some US$40mln into miRagen ahead of the merger.
The proposed merger will create a clinical-stage, biopharmaceutical company developing proprietary micro RNA-targeted clinical product candidates addressing haematological malignancies and pathological fibrosis and pre-clinical product candidates addressing cardiovascular and neurodegenerative diseases.
The total cash balance of the combined company upon the closing of the proposed merger and the financing is expected to exceed US$50 million.
“We believe microRNA targeting therapeutics have the potential to address complex diseases with high unmet medical need and miRagen will be well positioned to execute on our programs.” said William Marshall, who is not only president of miRagen but also its chief executive officer.
“We believe proceeds from the concurrent financing will allow us to advance our lead assets in haematological malignancy and pathological fibrosis into later stage clinical evaluation,” Marshall added.
Samuel Riccitelli, Signal’s president and chief executive officer, said: “We have chosen to combine with miRagen following an extensive review of strategic alternatives and a thorough process because we believe the proposed merger provides Signal stockholders with an opportunity for value appreciation.”
Shares in Signal shot up 26.2% to 45.35 cents on the news.
Story by ProactiveInvestors