Opexa Therapeutics Inc (NASDAQ:OPXA) and Acer Therapeutics Inc. have finalized a definitive merger deal under which the shareholders of Acer are currently projected to become holders of almost 88.8% of Opexa’s due common equity on a pro forma basis, with existing Opexa shareholders projected to own the remaining 11.2%. The planned deal remains dependent on certain conditions, including nod by Acer’s stockholders and Opexa’s shareholders.

The details

In conjunction with the planned deal, an investor syndicate headed by TVM Capital Life Sciences and formulated of current Acer investors and new shareholders has committed to invest around $15.7 million in Acer including through a conversion of around $5.7 million in due convertible notes immediately prior to completion of the proposed merger.

Chris Schelling, the Founder and CEO of Acer, reported that the company’s objective is to become a major pharmaceutical firm that acquires, commercializes and advances therapies for the cure of patients with grave rare diseases with major unmet medical need. They have committed considerable resources to rapidly develop major candidate EDSIVO™, a prospective life-saving treatment for people suffering with vEDS.

They consider that the incomes from the concurrent financing will enable them to develop EDSIVO™ via NDA filing with the FDA in 1H2018. As a public firm, they expect to engaging with an extensive pool of shareholders as they seek to expand and advance their pipeline and make numerous products accessible to patients over the next many years.

Neil K. Warma, the CEO and President of Opexa, reported that they have selected to combine with Acer after an extensive assessment of strategic options. Acer’s major asset, EDSIVO™, could be introduced in the market within the imminent two years. This factor, in conjunction with Acer’s pipeline, strategic vision, the recently obtained financing and Acer’s impressive management team, offers Opexa investors with a prospect for development in the value of their shares.