Apricus Biosciences Inc. (NASDAQ:APRI) and Seelos Therapeutics, Inc. have struck a deal to merge. Stockholders from Apricus approved the deal through a vote, which garnered 95% while an 85% supported the reverse stock split. However, even with this approval, the two companies must also adhere to the related securities purchase agreement under Nevada law. Thereafter the company will adopt the name Seelos Therapeutics
According to Richard Pascoe, CEO of Apricus Biosciences, the merger will offer value, which will serve the interests of the company’s shareholders. Apricus will also tap Seelos’ diversified pipeline of late-stage clinical assets. Thus being able to address the high demand for unmet needs.
The transaction brings together a vision to develop and advance innovative therapeutics
There are hundred thousands of people suffering from central nervous system (CNS). This is a condition, which requires urgent medical attention. This consideration has also accelerated the need for the merge, and the anticipation is that it will help in attending to such.
It is a noble cause as the CEO of Seelos explained. Raj Mehra was speaking in a joint press release where he emphasized, “We look forward to establishing a leadership position in the field of neurologic disorders, growing our team, driving long-term shareholder value, and bringing to market therapies for patients who currently have no viable treatment options.”
The two companies have robust portfolios all targeting psychiatric and movement disorders. The New York-based Seelos works for the good of patients with CNS disorders. On the other hand, Apricus puts a keen eye on innovative medicines in urology and rheumatology.
What terms will drive the completion of the merger?
The anticipation is that the duo will close the merger deal in January 2019 having met certain customary closing conditions. The terms dictate that the holders of Seelos’ outstanding capital stock will receive shares of common stock of Apricus. Additionally, Seelos stockholders will clinch 85% of the merged company while Apricus takes 15%. However, the latter will have a 90% entitlement of any cash payments beyond $500,000 received within ten years after the conclusion of the merger.