Cerulean Pharma Inc (NASDAQ:CERU)
Dare Biosciences has become a wholly owned subsidiary of Cerulean Pharma Inc. (NASDAQ:CERU) after the closing of a stock purchase agreement agreed between the two companies in March. Investors reacted to the news sending the stock up by 3.98% to close the day at $0.66 a share.
Combined Company Mission
The combined company is to focus on the development and commercialization of innovative products for women’s reproductive health. Cerulean Pharma Inc (NASDAQ:CERU)’s goal is to fill the gap in the niche market by taking products from innovation through development.
Dare Biosciences is backed by a team of experienced management executives with global experience in women’s healthcare. Ovaprene becomes the combined company’s lead candidate drug designed to address the $19 billion global contraception market. The non-hormonal intravaginal ring is designed to provide protection over multiple weeks.
“We are thrilled to have the opportunity to grow our business as a public company. Women’s reproductive health encompasses a broad spectrum of categories, many of which have unmet needs. Daré is committed to developing a portfolio that expands options, improves outcomes, and enhances safety for women,” said Sabrina Martucci Johnson Dare Biosciences CEO.
Stock Purchase Agreement
Dare Biosciences and Cerulean Pharma Inc. (NASDAQ:CERU) entered into a stock purchase agreement as part of a merger agreement in March. Cerulean agreed to divest some of its assets as part of an effort that sought to raise money to help fund the combined company’s operations. The company raised $1.5 million from the sale of its clinical product candidates CRLX 101 and CRLX301 to Blue Link Pharmaceuticals.
Under the terms of the agreement, holders of Dare equity now hold 51% of the parent company capital stock. Cerulean Pharma Inc (NASDAQ:CERU) is also to change its name to Dare Biosciences effective July 20, 2017. The company will continue to trade on the NASDAQ but under the new name and stock symbol “DARE”.
A 1:10 reverse stock-split of the combined company’s stock is also to be effected. The reverse stock-split will result in the consolidation of every ten shares of Cerulean Pharma Inc. (NASDAQ:CERU)’s stock issued for one issued and outstanding shares. No fractional shares are to be issued. The total number of shares issued and outstanding after the split will be approximately 6,047,200.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $CERU and receive breaking news on other hot stocks by signing up for our free newsletter!
About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.