- Nano cap Tokai Pharmaceuticals (TKAI +57.4%) jumps on a 12x surge in volume in response its announcement of a share purchase agreement with privately held Otic Pharma Ltd. whereby Otic will become majority owner.
- The combined company will focus on developing and commercializing products for ear, nose and throat disorders. Otic's lead program is OP-02, a combo drug to treat otitis media (ear infection) and Eustachian tube dysfunction.
- Under the terms of the agreement, Otic will receive 32,172,209 newly issued Tokai common shares. Tokai will assume outstanding Otic options and convertible securities. After the exchange, Otic shareholder will own ~60% of the combined enterprise and Tokai shareholders will own ~40%.
- The deal should close next quarter.