Mon, Mar. 16, 9:20 AM
- Thinly-traded nano cap Ruthigen (NASDAQ:RTGN) is up 12% premarket, albeit on only 2,200 shares, in response to its announcement of its merger with privately-held Pulmatrix. Under the terms of the agreement, Pulmatrix will become a wholly-owned subsidiary of Ruthigen. All of the former's debt and stock will be exchanged for shares of the latter, which will represent ~81% of the outstanding common stock of Ruthigen. The company will be renamed Pulmatrix and the stock will continue to trade on the Nasdaq Capital Market under the symbol "RTGN." Pulmatrix President & CEO Dr. Robert Clarke will lead the combined company.
- In connection with the merger agreement, certain institutional investors have agreed to invest an additional $10M in the company. Earlier, Pulmatrix raised $4.5M in anticipation of the merger.
- Separately, Oculus Innovative Sciences (NASDAQ:OCLS) sells 350K shares of its stake in RTGN to a group of institutional investors at $2.75 per share. If the merger closes, Oculus will sell its remaining 1.65M shares of Ruthigen for $2.75 per share. RTGN closed Friday at $3.91.
- Pulmatrix is a clinical stage firm developing dry powder inhaled therapeutics.
Oculus Innovative Sciences Inc designs, produces and markets prescription and non-prescription products. It provides products for wound management, nursing home & home healthcare, dermatology and wound & skin care for consumers.
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