Ohr Pharmaceuticals (OHRP) soared more than 82% in pre-market trade on Thursday after the company said it has agreed to merge with NeuBase Therapeutics Inc. Stockholders of NeuBase would become the majority holders of the combined company.
The proposed merger will create a public company focused on advancing NeuBase’s peptide-nucleic acid antisense oligonucleotide, or PATrOL, technology platform to develop therapies for severe and currently untreatable diseases caused by genetic mutations.
On a pro forma basis and based upon the number of shares of Ohr common stock to be issued in the merger, current Ohr stockholders will own 20% of the combined company and NeuBase stockholders will own 80% of the combined company, after accounting for the additional NeuBase financing transaction. The allocation will be subject to adjustment based on Ohr’s and NeuBase’s cash balance at the time of closing and the amount of the additional financing consummated by NeuBase at or before the closing of the merger.
Ohr said the proposed transaction has been approved by the boards of both companies. The merger is subject to approval by Ohr shareholders at a special meeting, expected to occur in the first half of 2019.
Upon closing, the combined company will change its name to NeuBase Therapeutics Inc. and will aim to trade under the symbol “NBSE” on Nasdaq. The executive team of NeuBase will serve as the executive team of the combined company, led by Dietrich Stephan as chief executive officer.