By Dean Seal
The biopharmaceutical company Cullgen intends to become a public company after agreeing to absorb the publicly traded Pulmatrix in a merger.
The Framingham, Mass.-based Pulmatrix said Wednesday that under the terms of the deal, its shareholders would own about 3.6% of the combined company and Cullgen stockholders would own the rest.
Pulmatrix shareholders are also set to receive a special cash dividend if the company's net cash at closing exceeds $2.5 million.
The combined company would be led by Cullgen Chairman and Chief Executive Ying Luo and Cullgen's board, with the addition of one representative of Pulmatrix. It would operate under the Cullgen name but trade on the Nasdaq Capital Market, where Pulmatrix is currently listed.
Pulmatrix said the combined company would have about $65 million in cash and cash equivalents, providing an expected runway through 2026.
The deal is expected to close by the end of March, subject to shareholder and regulatory approval.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
November 13, 2024 09:26 ET (14:26 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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