logo
Plus   Neg
Share
Email

Flex Pharma And Salarius Pharm To Merge

Flex Pharma Inc. (FLKS) and Salarius Pharmaceuticals LLC, a clinical-stage oncology company targeting the epigenetic causes of cancers, said that they have entered into a definitive merger agreement under which privately-held Salarius will merge with a wholly-owned subsidiary of Flex Pharma.

Salarius recently completed a $6.4 million private placement, which combined with cash from Flex Pharma is expected to fund the combined company to mid-2020, allowing it to report early cohort data from an ongoing Phase 1 Ewing sarcoma trial.

Upon the closing of the transaction, Flex Pharma stockholders will own approximately 19.9% of the combined company and current Salarius investors will own approximately 80.1% of the combined company. Flex Pharma stockholders will also receive a right to receive warrants, six months and one day following the closing date of the transaction, allowing them to purchase additional shares.

The total value of these warrants will be calculated such that upon exercise Flex Pharma stockholders would own an additional 2.4%, or a total of 22.3%, of the value of the combined entity, subject to adjustment based on Flex Pharma's net cash at closing.

Upon closing of the transaction, Flex Pharma is expected to be renamed Salarius Pharmaceuticals, Inc. and be under the leadership of Salarius' current management team, led by Chief Executive Officer, David Arthur. The Salarius clinical pipeline will become the lead assets of the company following the transaction.

Flex Pharma President and Chief Executive Officer, William McVicar, Ph.D., is expected to join the Board of Directors of the combined company following the closing of the transaction.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
A flaw in new iPhone operating system iOS 13, which is released by Apple on Thursday, exposes contact details stored in iPhones without requiring a passcode or biometric identification. Apple has known about the flaw since July, according to CNN business report quoting a person who reported the bug to Apple. Chinese electronics giant Huawei on Thursday launched its latest flagship smartphone range the Mate 30. Huawei unveiled the Huawei Mate 30 and Mate 30 Pro at an event in Munich. The new phones boasts of professional-grade cameras that competes directly with Apple's new iPhone 11 and iPhone 11 Pro... Schwartz Brothers Bakery of Seattle, Washington recalled 24 units of lemon dessert bars as it may contain undeclared egg. The products have a sell by date of September 21, 2019. The company issued the recall after it found that some of the Lemon Pound Cake was mislabeled as Lemon Dessert Bars. While the Lemon Pound Cake contains egg, the Lemon Dessert Bars label does not declare egg.